QUESTION 28 XYZ, Inc., is currently considering the purchase of a new computer system for one of its production facilities. Because of the significantly different size of the cash flows of the firm versus the project, XYZ has decided to use the firm and project coefficients of variation as relative measures of risk. Using the last five years of data, the firm has determined that the average after-tax cash ow for the firm is $20.0 million with a standard deviation of $5 million. The firm has also forecast the cash flows for the new sound system for the next five-year period. The estimates provide an average after-tax cash ow of $800,000 with a standard deviation of those flows equal to $100,000. Compute the coefficient of variation for both firm and project and is the project cash flow more riskier than the firm? O Firm = 0.25, Project = 0.125, Project is more riskier than firm O Firm = 4, Project = 8, Project is more riskier than firm O Firm = 0.25, Project = 0.125, Project is less riskier than firm O Firm = 0.125, Project = 0.25, Project is less riskier than firm QUESTION 29 A project has an initial cost of $18,400 and expected cash inflows of $7,200, $8,900, and $7,500 over Years 1 to 3, respectively. What is the discounted payback period if the required rate of return is 11.2 percent? O 3.00 years O 2.45 years O 2.87 years O 2.55 years