Statement I: Capital budgeting is a cost-benefit analysis, and the calculations for both investments and cash flows are the same. Statement II: Capital budgeting is a cost-benefit analysis. Therefore, companies should be considering projects carefully to increase short-term revenues.

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An investor gives you the following three casino projects with information on their return and risk

Hotels	Return	Risk ()
A	17%	8%
B	27%	17%
C	56%	13%

Given the available information, you can calculate the coefficient of variation (CV), and you will choose the following casino project:

Group of answer choices

A

C

None of these

B