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Autumn Apparel company is considering two mutually exclusive projects. The probability distribution of annual cash flows are presented below: Autumn Apparel company is considering two
Autumn Apparel company is considering two mutually exclusive projects. The probability distribution of annual cash flows are presented below:
Autumn Apparel company is considering two mutually exclusive projects. The probability distribution of annual cash flows are presented below: Project A Probability Cash flow 0.25 -----------$7,000 0.25 -$8,000 0.25 --$9,000 0.25 -$10,000 0.2 Project B Probability Cash flow -$5,000 0.3- -$6,000 0.3 -$7,000 0.2 --$8,000 Which project's cash flows appear riskier? (Athe coefficient of variation for projects A and B are equal B the standard deviation for projects A and B are equal project B D project AStep by Step Solution
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