Which project is riskier, Using the coefficient of

Which project is riskier

Reference no: EM13275748

Two projects have the following expected net present values and standard deviations of net present values: Project A: Expected net present vaule, $50,000 Standard deviation, $20,000. Project B: Expected net present value, $10,000 Standard deviation, $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?

Reference no: EM13275748

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