Compute the standard deviation of annual cash flows

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Mitchell Auto Parts Inc. has estimated the probability distribution of its annual net cash flows as follows:

Probability          Cash Flow Probability (in Thousands of Dollars)

0.10                                   $1,000

0.20                                    1,500

0.40                                   2,000

0.20                                   2,500

0.10                                    3,000

Compute the expected annual cash flow.

Compute the standard deviation of annual cash flows.

Compute the coefficient of variation of annual cash flows.

Reference no: EM13868422

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