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Do Not Round Final Answers. Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $100 per week
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Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $100 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. Site A Site B Probability Cash FlowsProbability Cash Flows 0.2 0.2 0.2 0.4 50 100 110 120 0.1 0.2 0.2 0.2 0.3 20 5 100 150 190 a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Coefficient of Variation Site A Site B b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk. O Site A Site B Step by Step Solution
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