Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash...
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Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $110 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values Site A Site B Probability Cash Flows Probability 0.1 Cash Flows 60 110 120 145 20 50 110 150 185 0.2 a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Coefficient of Variation Site A Site B 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 O Site A O Site B
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