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 38.)
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 options, 7.25 is the correct coefficient of variation based on the data provided in the previous problem.

In the Previous Problem You Were Asked to Find the Expected