Question: Two projects have the following expected net present values and standard deviations of net present values: a. Using the standard deviation criterion, which project is

Two projects have the following expected net present values and standard deviations of net present values:

a. Using the standard deviation criterion, which project is riskier?
b. Using the coefficient of variation criterion, which project is riskier?
c. Which criterion do you think is appropriate to use in this case?Why?

Project Expected Net Present Value Standard Deviation $50,000 10,000 $20,000 7,000

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