Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $130 per week isanticipated from two stores that are being evaluated. Both stores have positive net present values.Site AProbability Cash Flows0.20.1Site ASite B130190Coefficient ofVariationSite AO Site BSite BProbability Cash Flows0.1a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimalplaces.)0.30.20.2130160190b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure ofrisk.<< PrevBARANSPOD beanin4 of 8Next >SACH********

The problem requires identifying coefficient of variation for the given alternatives. The…

Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $130 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. Site A Probability Cash Flows 0.2 0.3 0.4 0.1 Site A Site B 80 130 140 190 Coefficient of Variation Site B Probability Cash Flows 0.1 50 a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimal places.) O Site A O Site B 0.2 0.3 0.2 0.2 80 130 160 190 b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk.

Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $130 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. Site A Probability Cash Flows 0.2 0.3 0.4 0.1 Site A Site B 80 130 140 190 Coefficient of Variation Site B Probability Cash Flows 0.1 50 a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimal places.) O Site A O Site B 0.2 0.3 0.2 0.2 80 130 160 190 b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 1PA: Your company is planning to purchase a new log splitter for is lawn and garden business. The new...

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