Mitchell Auto Parts, Inc. has estimated the probability distribution of its annual net cash flows as follows:
|
Probability
|
Cash Flow
(in Thousands of Dollars)
|
|
0.10
|
$ 1,000
|
|
0.20
|
1,500
|
|
0.40
|
2,000
|
|
0.20
|
2,500
|
|
0.10
|
3,000
|
a. Compute the expected annual cash flow.
b. Compute the standard deviation of annual cash flows.
c. Compute the cofficient of variation of annual cash flows.