Karamo's Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow...
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Karamo's Shoe Stores Incorporated 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. Site A Site B Probability Cash Flows 0.3 Probability Cash Flows $ 80 0.2 $ 50 0.3 130 0.2 80 0.1 0.3 160 170 0.3 130 0.1 180 0.2 235 a. Compute the coefficient of variation for each site. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Site A Site B Coefficient of Variation . 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 Site B Karamo's Shoe Stores Incorporated 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. Site A Site B Probability Cash Flows 0.3 Probability Cash Flows $ 80 0.2 $ 50 0.3 130 0.2 80 0.1 0.3 160 170 0.3 130 0.1 180 0.2 235 a. Compute the coefficient of variation for each site. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Site A Site B Coefficient of Variation . 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 Site B
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