Assess Impact of Uncertainty (L.O.2): Time Delay, Inc., has an opportunity to sell an asset for $15 million today. Alter- natively, Time Delay can use the asset in production for one month. If it is used, the expected profits and their probabilities are:

The asset would be sold at the end of the month, and the present value of the sale is included in the profit computations.

Required: Determine the following:

a. Expected value of the production alternative.

b. Standard deviation of the production alternative.

c. Coefficient of variation for the production alternative.

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Probability Profit $ 8,000,000 12,000,000 15,000,000 123 20,000,000 .4