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Question 1 [10 Marks] Two projects have the following expected net present values and standard deviations of net present values Project Expected Net Present Value
Question 1 [10 Marks] Two projects have the following expected net present values and standard deviations of net present values Project Expected Net Present Value Standard Deviation A R50,000 R20,000 B R10,000 R7,000 (2) Required: 11 Using the standard deviation criterion, which project is riskier? 12 Using the coefficient of variation criterion, which project is riskier? 13 Which criterion do you this is appropriate to use in this case? Why? (5) (3)
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