Alp Don't upload any image Karamo's Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow of $180 perweek is anticipated from two stores that are being evaluated. Both stores have positive net present values.Probability0.10.30.30.3Site ASite ASite BCash Flows$ 90180170220Coefficient ofVariationProbability0.10.30.30.10.2Site BCash Flows$ 5070a. Compute the coefficient of variation for each site.Note: Do not round intermediate calculations. Round your answers to 3 decimal places.180230290b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure ofrisk.Activate Window

Coefficient of variation is a financial metric that represent the risk -to-reward ratio where…

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. Probability 0.1 0.3 0.3 0.3 Site A Site A Site B Cash Flows $ 90 180 170 220 Probability 0.1 0.3 0.3 0.1 0.2 Coefficient of Variation Site B Cash Flows $ 50 70 180 a. Compute the coefficient of variation for each site. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. 230 290 b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measur risk. Activate Win