Alternative A and Alternative B have the same ENPV. When graphing possible results from the alternative projects, Alternative A has fewer values clustered around the ENPV and has a greater number of lower and higher possible values than Alternative B. What can be concluded when comparing Alternative A to Alternative B?
A) A is not as risky as B because its value distribution indicates a higher upside probability.
B) A is not as risky as B because its value distribution indicates lower overall variability.
C) A is riskier than B because its value distribution indicates a lower overall variability.
D) A is not as risky as B because its values are more equally spread over the entire value range.
E) A is riskier than b because its value distribution indicates a higher downside probability.
Correct Answer:
Verified
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