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MitchellAutoParts,Inc.hasestimatedtheprobabilitydistributionofitsannualnetcashflowsasfollows: Year Net Cash Flows Certainty Equivalent Factor 1 $30,000 0.90 2 30,000 0.80 3 30,000 0.65 4 20,000 0.50 Compute the expected annual cash
- MitchellAutoParts,Inc.hasestimatedtheprobabilitydistributionofitsannualnetcashflowsasfollows:
Year Net Cash Flows Certainty Equivalent Factor
1 $30,000 0.90
2 30,000 0.80
3 30,000 0.65
4 20,000 0.50
- Compute the expected annual cash flow.
- Compute the standard deviation of annual cash flows.
- Compute the coefficient of variation of annual cash flows.
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Principles of Managerial Finance
Authors: Chad J. Zutter, Scott B. Smart
15th edition
013447631X, 134476315, 9780134478197 , 978-0134476315
