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A company will decide for an appropriate proposal. The gains for two proposal are given in the following: Proposal Y Proposal Z Net cash flow
A company will decide for an appropriate proposal. The gains for two proposal are given in the following: Proposal Y Proposal Z Net cash flow Probability Net cash flow Probability -300.000 0.2 200.000 0.3 200.000 0.5 250.000 0.3 400.000 0.2 300.000 0.2 700.000 0.1 350.000 0.2 Accordingly, assess the projects using coefficient of variation (CV) and decide which proposal is more appropriate for company if the firm behave as: 1. Risk averse 2. Willing to provide them with the hope of better returns
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