Book Print Saved Mr. John Backster, a retired executive, desires to invest a portion of his...

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Book Print Saved Mr. John Backster, a retired executive, desires to invest a portion of his assets in rental property. He has narrowed his choices to two apartment complexes, Windy Acres and Hillcrest Apartments. The anticipated annual cash inflows from each are as follows: Windy Acres Yearly Aftertax Cash Inflow Probability $90,000 0.2 95,000 110,000 125,000 0.2 0.2 0.2 130,000 0.2 Hillcrest Apartments Yearly Aftertax Cash Inflow Probability $95,000 0.2 100,000 0.3 110,000 0.4 120,000 0.1 erences a. Find the expected value of the cash flow for each apartment complex. (Enter the answers in thousands.) Expected cash flow Windy Acres. $ Hillcrest Apartments $ b. What is the coefficient of variation for each apartment complex? (Do not round intermediate calculations. Round the final answers to 4 decimal places.) Windy Acres Hillcrest Apartments Coefficient of variation c. Which apartment complex has more risk? Help Sa winay Acres Yearly Aftertax Cash iest Apartments Yearly Aftertax Cash Inflow Probability Inflow Probability $90,000 0.2 $95,000 0.2 95,000 110,000 125,000 0.2 100,000 0.3 0.2 110,000 0.4 130,000 0.2 0.2 120,000 0.1 a. Find the expected value of the cash flow for each apartment complex. (Enter the answers in thousands.) Expected cash flow Windy Acres Hillcrest Apartments $ $ b. What is the coefficient of variation for each apartment complex? (Do not round intermediate calculations. Round the final answers to 4 decimal places.) Coefficient of variation Windy Acres Hillcrest Apartments c. Which apartment complex has more risk? Windy Acres Hillcrest Apartments Book Print Saved Mr. John Backster, a retired executive, desires to invest a portion of his assets in rental property. He has narrowed his choices to two apartment complexes, Windy Acres and Hillcrest Apartments. The anticipated annual cash inflows from each are as follows: Windy Acres Yearly Aftertax Cash Inflow Probability $90,000 0.2 95,000 110,000 125,000 0.2 0.2 0.2 130,000 0.2 Hillcrest Apartments Yearly Aftertax Cash Inflow Probability $95,000 0.2 100,000 0.3 110,000 0.4 120,000 0.1 erences a. Find the expected value of the cash flow for each apartment complex. (Enter the answers in thousands.) Expected cash flow Windy Acres. $ Hillcrest Apartments $ b. What is the coefficient of variation for each apartment complex? (Do not round intermediate calculations. Round the final answers to 4 decimal places.) Windy Acres Hillcrest Apartments Coefficient of variation c. Which apartment complex has more risk? Help Sa winay Acres Yearly Aftertax Cash iest Apartments Yearly Aftertax Cash Inflow Probability Inflow Probability $90,000 0.2 $95,000 0.2 95,000 110,000 125,000 0.2 100,000 0.3 0.2 110,000 0.4 130,000 0.2 0.2 120,000 0.1 a. Find the expected value of the cash flow for each apartment complex. (Enter the answers in thousands.) Expected cash flow Windy Acres Hillcrest Apartments $ $ b. What is the coefficient of variation for each apartment complex? (Do not round intermediate calculations. Round the final answers to 4 decimal places.) Coefficient of variation Windy Acres Hillcrest Apartments c. Which apartment complex has more risk? Windy Acres Hillcrest Apartments