Trail Guides, Inc. is currently evaluating two mutually exclusive investments. After doing a scenario analysis and applying probabilities to each scenario, they have determined that the investments have the following distributions around the expected NPVs. Scenario Probability NPV (A) NPV(B) 1 10% ($50,000.00) ($46,011.50) 2 25% $7,500.00 $11,000.00 3 30% $17,000.00 $17,000.00 4 25% $34,560.00 $33,025.00 5 10% $66,897.00 $57,996.00 Expected NPV $17,304.70 $17,304.70 Which project is preferable You cannot tell from this alone Variance $797,429,118.81 $638,219,428.99 Standard Deviation 28,238.79 25,263.01 Which project seems to be riskier A seems to be riskier Coefficient of Variation 0.227822321 0.23701984 Does your decision change? A has a lower CV Prob(NPV <= 0) Which project is best?