Compute the cofficient of variation of annual cash flows

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Reference no: EM131337439

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.

Reference no: EM131337439

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