Assess the Impact of Uncertainty (L.O.2): Unusual Company has an opportunity to sell a group of machines for $25 million today. Alternatively, Unusual Company can use the machines in production for one more year. If used, the present value of the profits plus the present value of the sale one year from now and their probabilities are:

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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Present Value in Millions of Dollars 25 30 2282 $15 20 Probability .10 .15 .45 .20 35 .10