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San Diego State University Operations And Supply Chain Management Assignment Help - Present value


Question - Coefficient of Variation. 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?

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