Two projects have the following expected net present values


Two projects have the following expected net present values and standard deviations of net present values:

Project                         Expected Net Present Value                            Standard Deviation

A                                              $50,000                                                           $20,000

B                                              $10,000                                                           $7,000

a. Using the standard deviation criterion, which project is riskier?

b. Using the coefficient of variation criterion, which project is riskier?

c. Which criterion do you think is appropriate to use in this case? Why?

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Financial Management: Two projects have the following expected net present values
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