Use the following information to answer questions 13 - 15
The following data is on two one period capital projects.
-What is the standard deviation of probable cash flows from each project?
A) A = 159.69, B = 98.49
B) A = 223.83, B = 139.28
C) A = 274.22, B = 170.59
D) A = 316.54, B = 196.98
E) A = 354.11, B = 220.22

Question

Use the following information to answer questions 13 - 15
The following data is on two one period capital projects. 
-What is the standard deviation of probable cash flows from each project?
A) A = 159.69, B = 98.49 
B) A = 223.83, B = 139.28 
C) A = 274.22, B = 170.59 
D) A = 316.54, B = 196.98 
E) A = 354.11, B = 220.22

Quizplus · Accepted Answer

According to the data given, the standard deviation for project A is $223.83 and for project B is $139.28. The best choice depends on various factors such as the nature of the project, risk appetite, and required rate of return. Therefore, without more information, it is not possible to determine the best choice.

Use the Following Information to Answer Questions 13 - 15