Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probablities given in the table (below) summarizes the firm’s analysis to this point.

Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probablities given in the table (below) summarizes the firm’s analysis to this point.

Project 257 Project 432

Rate of Return Probability Rate of Return Probability

-10% .01 10% .05

10 .04 15 .10

20 .05 20 .10

30 .10 25 .15

40 .15 30 .20

45 .30 35 .15

50 .15 40 .10

60 .10 45 .10

70 .05 50 .05

80 .04

100 .01

For each project, compute:

1) The range of possible rates of return.

2) The expected value of return

3) The standard deviation of returns

4) The coefficient of variation of returns

b) Construct a bar chart of each distribution of rates of return

c) Which project would you consider less risky? Why?

The post Swift Manufacturing must choose between two asset purchases. The annual rate of return and the related probablities given in the table (below) summarizes the firm’s analysis to this point. appeared first on Versed Writers.

Welcome to originalessaywriters.com, our friendly and experienced essay writers are available 24/7 to complete all your assignments. We offer high-quality academic essays written from scratch to guarantee top grades to all students. All our papers are 100% plagiarism-free and come with a plagiarism report, upon request

Tell Us “Write My Essay for Me” and Relax! You will get an original essay well before your submission deadline.