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McEnro wishes to decide between two projects, X and Y. By using probability estimates, he has determined the following statistics


Project X ($)

Project Y ($)

Expected NPV

35,000

20,000


22,000

20,000

(a) Compute the coefficient of variation for each project, and (b) explain why and the coefficient of variation give different rankings of risk. Which method is better?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9799651

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