everything is the same except that probability of above normal is 0.3 and normal is 0.5

ahow your work

Chapter 14: Capital Budgeting under Uncertainty 297 PROBLEMS n has two investment projects under the different states nomy: above normal, normal, and below normal. The probab the economy and their corresponding net cash flows are as follows: The Wellington Corporation has two investment 14-1 these states of the economy and their co $900 Net Cash Flows State of Economy Probability Project A Project B Above normal 0.50 $700 Normal 0.30 500 700 Below normal 0.20 550 (a) Determine the following: expected value, standard deviation, and coeffi- cient of variation. (b) Interpret the measures. 350