Mr. John Backster, a retired executive, desires to invest a portion of his assets in rental property. He has narrowed his choices to two apartment complexes, Windy Acres and Hillcrest Apartments. The anticipated annual cash inflows from each are as follows: Windy Acres Yearly Aftertax Cash Inflow $50,000 55,000 70,000 85,000 90,000 Windy Acres Hillcrest Apartments Probability 0.2 0.2 0.2 0.2 0.2 Windy Acres Hillcrest Apartments c. Which apartment complex a. Find the expected value of the cash flow for each apartment complex. (Enter the answers in thousands.) Expected cash flow $ $ Hillcrest Apartments Yearly Aftertax Cash Coefficient of variation Inflow $55,000 60,000 b. What is the coefficient of variation for each apartment complex? (Do not round intermediate calculations. Round the final answers to 4 decimal places.) more 70,000 80,000 Probability 0.4 0.2 0.1 0.3

Mr. John Backster, a retired executive, desires to invest a portion of his assets in rental property. He has narrowed his choices to two apartment complexes, Windy Acres and Hillcrest Apartments. The anticipated annual cash inflows from each are as follows: a. Find the expected value of the cash flow for each apartment complex. (Enter the answers in thousands.) b. What is the coefficient of variation for each opartment complex? (Do not round intermediate calculations. Round the final answers to 4 decimal places.) c. Which apartment complex has more risk