In the previous problem you were asked to find the expected NPV of a project TWI is considering. Use the same data to calculate the project's coefficient of variation. (Hint: Use the expected NPV as found in Problem 12.)
A) 5.87
B) 6.52
C) 7.25
D) 7.97
E) 8.77

Question

Quizplus · Accepted Answer

The coefficient of variation is calculated as the standard deviation divided by the expected NPV. Given the expected NPV from Problem 12, the calculation results in a coefficient of variation closest to 7.25.

In the Previous Problem You Were Asked to Find the Expected