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Kyle's Shoe Stores, Inc., is considering opening an additional suburban outlet. An aftertax expected cash flow of $120 per week is anticipated from two stores
Kyle's Shoe Stores, Inc., is considering opening an additional suburban outlet. An aftertax expected cash flow of $120 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. |
Site A | ||||||
Probability | Cash flows | |||||
.20 | 60 | |||||
.20 | 120 | |||||
.30 | 130 | |||||
.30 | 150 | |||||
|
Site B | ||||||
Probability | Cash flows | |||||
.20 | 30 | |||||
.10 | 60 | |||||
.20 | 120 | |||||
.20 | 150 | |||||
.30 | 180 | |||||
|
(a) | Compute the coefficient of variation for each site.(Do not round intermediate calculations. Round your answers to 4 decimal places.) |
Coefficient of variation | |
Site A | |
Site B | |
|
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