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Question 5 [8 marks] (a) Consider the probability distribution of the first year cash flows for the ABC Project: Possible Cash flow Probability $1,000 15%
Question 5 [8 marks] (a) Consider the probability distribution of the first year cash flows for the ABC Project: Possible Cash flow Probability $1,000 15% $2,000 75% $3,000 10% i). What is the most likely outcome? (1 mark) ii) Calculate the range of possible cash flows. (1 mark) iii). Calculate the expected cash flow. (2 marks) ivi). Calculate the standard deviation of the possible cash flows.(3 marks) v). Calculate the coefficient of variation of the possible cash flows.(1 mark
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