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Please show your work for Part A) Award: 0.33 out of 0.50 points Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax
Please show your work for Part A)
Award: 0.33 out of 0.50 points Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $180 day (expected value) is projected for each of the two locations being evaluated Site A Site B Probability 10 30 10 30 .20 Probability Cash Flows Cash Flows .20 40 20 .20 90 180 190 260 $50 90 180 240 290 $180 Expected value $180 Expected value a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round the final answers to 4 decimal places.) Coefficient of variation Site A Site B 3002 .4850 b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk Site AStep by Step Solution
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