A compute the coefficient of variation for each project and

Reference no: EM13484475 , Length: 10

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?

Reference no: EM13484475

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