Kyles Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of

Question:

Kyleâ€™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.

Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure ofrisk.

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at... Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...