Question: Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $100 per day (expected value) is projected for each of

Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $100 per day (expected value) is projected for each of the two locations being evaluated. Site A Probability Cash Flows 0.20 0.30 0.30 0.20 Expected value Site A Site B $50 100 110 135 $100 O Site A O Site B Site B Coefficient of variation Probability 0.10 0.20 0.40 0.20 0.10 Expected value a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round the final answers to 4 decimal places.) Cash $ Flows 20 50 100 150 180 $100 b. Which of these sites would you select based on the distribution of these cash flows?
 Mary Beth Clothes is considering opening an additional suburban outlet. An

Mary Beth Clothes is considering opening an additional suburban outlet. An aftertax cash flow of $100 per day (expected value) is projected for each of the two locations being evaluated a. Compute the coefficient of variation for each site. (Do not round intermediote calculations. Round the final answers to 4 decimo ploces.) b. Which of these sites would you select based on the distribution of these cash flows? Site A Site B

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