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answer in detail and using manual way 3 I. George Gau, Inc., can invest in one of two mutually exclusive, one-year projects requiring equal initial

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answer in detail and using manual way

3 I. George Gau, Inc., can invest in one of two mutually exclusive, one-year projects requiring equal initial outlays. The two proposals have the following discrete probability distribu- tions of net cash inflows for the first year: PROJECT A PROBABILITY CASH FLOW 0.20 $2.000 PROJECTE PRORABILITY CASH FLOW 0.10 $2.000 6,000 0:40 6,000 8.000 0120 0.10 1.00 a. Without calculating a mean and a coefficient of variation, can you select the better pro- posal, assuming a risk-averse management? b. Verify your intuitive determination

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