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1. Consider the probability distributions of the first year cash flows of two projects, MNO and POR: MNO PQR Possible cash Probabili flow ty -$10,000

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1. Consider the probability distributions of the first year cash flows of two projects, MNO and POR: MNO PQR Possible cash Probabili flow ty -$10,000 10% $0 65% +$20,000 25% (a) Calculate the range of possible cash flows for each project (b) Calculate the expected cash flow for each project (c) Calculate the standard deviation of the possible cash flows for each project (d) Calculate the coefficient of variation of the possible cash flows for each project (e) Which project has more risk? Why? 1. Consider the probability distributions of the first year cash flows of two projects, MNO and POR: MNO PQR Possible cash Probabili flow ty -$10,000 10% $0 65% +$20,000 25% (a) Calculate the range of possible cash flows for each project (b) Calculate the expected cash flow for each project (c) Calculate the standard deviation of the possible cash flows for each project (d) Calculate the coefficient of variation of the possible cash flows for each project (e) Which project has more risk? Why

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