Based on the distribution of these cash flows

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Kyle’s Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $130 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk. Site A Site B Probability Cash Flows Probability Cash Flows .3 80 .2 50 .3 130 .2 80 .1 160 .3 130 .3 170 .1 180 .2 235

Reference no: EM131081433

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