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Karamos Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow of $140 per week is anticipated from two stores
Karamos Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow of $140 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values.
Site A | Site B | ||
---|---|---|---|
Probability | Cash Flows | Probability | Cash Flows |
0.1 | $ 90 | 0.2 | $ 30 |
0.3 | 140 | 0.2 | 70 |
0.4 | 150 | 0.1 | 140 |
0.2 | 145 | 0.3 | 180 |
0.2 | 260 |
- Compute the coefficient of variation for each site.
Note: Do not round intermediate calculations. Round your answers to 3 decimal places.
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