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Kyle’s Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow...

Kyle’s Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $100 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 Probability Cash Flows
0.2 50 0.1 20
0.2 100 0.2 50
0.2 110 0.2 100
0.4 120 0.2 150
0.3 190


a. Compute the coefficient of variation for each site.

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