Expected Value and Standard Deviation. The Lendal Company is considering investment in one of two mutually exclusive projects. They have the following cash inflows for each of the next 3 years: Cash...

Expected Value and Standard Deviation. The Lendal Company is considering investment in one of two mutually exclusive projects. They have the following cash inflows for each of the next 3 years:

Cash Inflows ($)

Probability          Project A            Project B

0.10                        3,000                    3,000

0.25                        3,500                     4,000

0.30                        4,000                     5,000

0.25                        4,500                    6,000

0.10                        5,000                    7,000

Calculate (a) the expected value (expected cash inflow) of each project; (b) the standard deviation of each project; and (c) the coefficient of variation. (d ) Which Project has the greater degree of risk? Why?