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Mr. Sam Golff desires to invest a portion of his assets in rental property. He has...

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Finance

Mr. Sam Golff desires to invest a portion of his assets inrental property. He has narrowed his choices down to two apartmentcomplexes, Palmer Heights and Crenshaw Village. After conferringwith the present owners, Mr. Golff has developed the followingestimates of the cash flows for these properties.
    

Palmer Heights

Yearly Aftertax
Cash Inflow
(in thousands)		Probability
$20.2
25.2
40.2
55.2
60.2

  

Crenshaw Village

Yearly Aftertax
Cash Inflow
(in thousands)		Probability
$25.2
30.3
40.4
50.1


a. Find the expected cash flow from each apartmentcomplex. (Enter your answers in thousands (e.g, $10,000should be enter as "10").)
  


  
b. What is the coefficient of variation for eachapartment complex? (Do not round intermediate calculations.Round your answers to 3 decimal places.)
  


  
c. Which apartment complex has more risk?
  

Palmer Heights
Crenshaw Village

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Transcribed Image Text

Mr. Sam Golff desires to invest a portion of his assets inrental property. He has narrowed his choices down to two apartmentcomplexes, Palmer Heights and Crenshaw Village. After conferringwith the present owners, Mr. Golff has developed the followingestimates of the cash flows for these properties.    Palmer HeightsYearly AftertaxCash Inflow(in thousands)Probability$20.225.240.255.260.2  Crenshaw VillageYearly AftertaxCash Inflow(in thousands)Probability$25.230.340.450.1a. Find the expected cash flow from each apartmentcomplex. (Enter your answers in thousands (e.g, $10,000should be enter as "10").)    b. What is the coefficient of variation for eachapartment complex? (Do not round intermediate calculations.Round your answers to 3 decimal places.)    c. Which apartment complex has more risk?  Palmer HeightsCrenshaw Village

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