. ROGERS 9:12 AM 46% Inbox Edwards Industries Ltd. is comparing the results of two types of machines, Filter and Gadget. Both projects are expected to deliver similar returns but have different expected risk profiles as a result of the following: Filter Gadget Net after tax Probability Net after tax Probability cash cash flows('$000) flows('$000) (600) 0.1 100 0.1 2,000 0.7 1,500 10.2 4,500 0.2 2,500 10.3 3,500 0.4 Required: 1. Compute the expected annual net cash inflow for the Filter project. (2 marks) 2. Compute the expected annual net cash inflow for the Gadget project. (2 marks) course info ROGERS 9:13 AM 46% Inbox 3,500 0.4 Required: 1. Compute the expected annual net cash inflow for the Filter project. (2 marks) 2. Compute the expected annual net cash inflow for the Gadget project. (2 marks) 3. Compute the standard deviation of cash flows for the Filter project. (3 marks) 4. Compute the standard deviation of cash flows for the Gadget project. (3 marks) 5. When is it useful to use the coefficient of variation to measure risk. (3 marks) 6. Compute the coefficient of variation of cash flows for the Filter project. (2 marks) 7. Compute the coefficient of variation of cash flows for the Gadget project. (2 marks) 8. State which project is riskier based on the coefficient of variation results. (1 marks) Midterm 1 B course info