Question: 5VON Help Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $140 per day (expected value) is projected for
5VON Help Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $140 per day (expected value) is projected for each of the two locations being evaluated. Site A Probability Cash Flows @.29 $80 0.20 140 0.30 150 0.30 170 Site B Probability Cash Flows 0.20 $40 8.10 78 0.20 140 0.40 190 8.10 210 Expected value $140 Expected value $140 a. Compute the coefficient of variation for each site. (Do not round Intermediate calculations. Round the final answers to 4 decimal places.) Coefficient of variation Site A Site B b. Which of these sites would you select based on the distribution of these cash flows? Site A Site B
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