Karamo’s Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow of $180 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
0.1 $ 90 0.1 $ 50
0.3 180 0.3 70
0.3 170 0.3 180
0.3 220 0.1 230
0.2 290
Compute the coefficient of variation for each site.
Note: Do not round intermediate calculations. Round your answers to 3 decimal places.
coefficient of variation
Site A
Site B