Five investment alternatives have the following returns and standard deviations of returns. Alternatives A B m o oo P Returns: Expected Value $ 1,870 3,410 3,410 5,840 19,000 Standard Deviation $ 790 1,330 850 2,300 1,630 Calculate the coefficient of variation and rank the five alternatives from lowest risk to the highest risk by using the coefficient of variation. (Round your answers to 3 decimal places.) Alternatives Coefficient of Variation Rank A B E Dixie Dynamite Company is evaluating two methods of blowing up old buildings for commercial purposes over the next five years. Method one (implosion) is relatively low in risk for this business and will carry a 12 percent discount rate. Method two (explosion) is less expensive to perform but more dangerous and will call for a higher discount rate of 17 percent. Either method will require an initial capital outlay of $80,000. The inflows from projected business over the next five years are shown next. Years 1 AWN Method 1 $31,700 36,800 46,900 35,200 26,500 Method 2 $19,800 30, 600 34,500 34,700 70,400 5 Use Arpendix B for an approximate answer but calculate your final answers using the formula and financial calculator methods. a. Calculate net present value for Method 1 and Method 2. (Do not round intermediate calculations and round your answers to 2 decimal places.) Net Present Value Method 1 Method 2