Kyle's Shoe Stores Inc. is considering opening an additional suburban outlet. An aftertax expected cash flow of $130 per week isanticipated from two stores that are being evaluated. Both stores have positive net present values.Site AProbability Cash Flows0.20.1Site ASite B130190Coefficient ofVariationSite AO Site BSite BProbability Cash Flows0.1a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimalplaces.)0.30.20.2130160190b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure ofrisk.<< PrevBARANSPOD beanin4 of 8Next >SACH********

The problem requires identifying coefficient of variation for the given alternatives. The…

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. Site A Probability Cash Flows 0.2 0.3 0.4 0.1 Site A Site B 80 130 140 190 Coefficient of Variation Site B Probability Cash Flows 0.1 50 a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimal places.) O Site A O Site B 0.2 0.3 0.2 0.2 80 130 160 190 b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk.

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. Site A Probability Cash Flows 0.2 0.3 0.4 0.1 Site A Site B 80 130 140 190 Coefficient of Variation Site B Probability Cash Flows 0.1 50 a. Compute the coefficient of variation for each site. (Do not round intermediate calculations. Round your answers to 3 decimal places.) O Site A O Site B 0.2 0.3 0.2 0.2 80 130 160 190 b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Please answer fast without plagiarism and introduction please
Oakland Chips, which has a 10 percent required return (K), is considering a new extractor. Because of anticipated start-up delays, cash flow will be $1.000 at the end of each year for years 4 through 20. What is the present value of those future cash flows? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Allison's Dresswear Manufacturers is preparing a strategy for the fall season. One alternative is to expand its traditional ensemble of wool sweaters. A second option would be to enter the cashmere sweater market with a new line of high-quality designer label products. The marketing department has determined that the wool and cashmere sweater lines offer the following probability of outcomes and related cash flows. Expand Wool Sweaters Line Expected Sales Probability Fantastic Moderate Low 0.2 Present Value of Cash Flows from Sales $226,000 184,000 93,300 Expand wool sweaters line Enter cashmere sweaters line Enter Cashmere Sweaters Line Probability 0.3 0.3 0.4 The initial cost to expand the wool sweater line is $155,000. To enter the cashmere sweater line, the initial cost in designs, inventory, and equipment is $173,000. Net Present Value Present Value of Cash Flows from Sales $366,000 327,000 a. Calculate net present value if, Allison's Dresswear Manufacturers decides to: (Negative…
Three machine alternatives are being evaluated by a company. The annual cash flows for each of these three alternatives are given in the table below (all in dollars). Based on the NPW criterion, rank these three alternatives from most attractive to least attractive assuming a MARR of 7% compounded annually. n Alternative 1 Alternative 2 Alternative 3 ======== 0 -1,400 -2.000 -1,000 1 300 300 400 2 500 600 400 ==================== ==#== 3 500 800 400 4 700 1,000 400 Alternative 1– Alternative 3 – Alternative 2 Alternative 2 – Alternative 3 – Alternative 1 Alternative 3 – Alternative 2 - Alternative 1 O Alternative 3 – Alternative 1- Alternative 2 O O O O
Karamo's Shoe Stores Incorporated is considering opening an additional suburban outlet. An aftertax expected cash flow of $160 per week is anticipated from two stores that are being evaluated. Both stores have positive net present values. Probability 0.2 0.2 0.3 0.3 Site A Site B Site A Cash Site A O Site B FlowS $ 70 160 170 210 Probability 0.1 0.2 0.2 0.4 0.1 a. Compute the coefficient of variation for each site. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. Site B Coefficient of Variation Cash FlowS $ 50 80 160 210 230 b. Which store site would you select based on the distribution of these cash flows? Use the coefficient of variation as your measure of risk.
The estimated negative cash flows for three design alternatives are shown below. The MARR is 13% per year and the study period is six years. Which alternative is best based on the IRR method? Doing nothing is not an option. Capital investment Annual expenses A. Alternative A B. Alternative C OC. Alternative B EOY 0 1-6 Which alternative would you choose as a base one? Choose the correct answer below. A $79,300 7,900 Alternative B $63,000 12,370 $71,600 10,120
not use ai please
PR 11-1A Average rate of return method, net present value method, and analysis for a service company Obj. 2, 3 The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated income from operations and SHOW MI NO net cash flows from each investment are as follows: tart TIMPLATE Front-End Loader Greenhouse Income from Operations Net Cash Flow Income from Operations Net Cash Flow Year $ 40,000 35,000 22,000 18,000 $ 26,250 $25.000 20.000 7,000 3,000 $11,250 11,250 11,250 26,250 26,250 26,250 4 11,250 11,250 $56,250 26,250 $131,250 1,250 16,250 $131,250 Total $56.250 Each project requires an investment of $75,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes of the net present value analysis. Instructions 1. Compute the following: A. The average rate of return for each investment. Answer B. The net present value for each investment. Use the present…
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