Cece Equestrian Tours is evaluating 2 mutually exclusive projects. The probabilities of the different project returns are shown below.

1. Calculate the expected NPV. Which project is better?

2. Calculate the variance and standard deviation. Now which project is better?

3. Calculate the coefficient of variation and the probability of negative return. Does this change your decision?

Cece Equestrian Tours
Probability	NPVA	NPVB
15%	(34,000)	(12,750)
20%	(8,500)	2,125
30%	17,000	17,000
20%	42,500	31,875
15%	68,000	46,750
Expected NPV
Variance
Standard Deviation
Coefficient of Variation
Prob(NPV <= 0)