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Problem 13-12 (Algo) Coefficient of variation and investment decision [LO13-1] Karamo's Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash
Problem 13-12 (Algo) Coefficient of variation and investment decision [LO13-1] Karamo's Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow of $170 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. a. Compute the coefficient of variation for each site. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. 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 A Site B
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