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3PC has decided to evaluate the riskier project at a 10% rate and the less risky project at an 8% rate. a. What are the
3PC has decided to evaluate the riskier project at a 10% rate and the less risky project at an 8% rate. a. What are the expected values of the annual cash flows from each project? Do not round intermediate calculations. Round your answers to the nearest dollar. What is the coefficient of variation (CV) for each project? Do not round intermediate calculations. Round your answers to two decimal places. Coefficient of variation b. What is the risk-adjusted NPV of each project? Do not round intermediate calculations. Round your answers to the nearest cent. Risk-adjusted NPV c. If it were known that Project B is negatively correlated with other cash flows of the firm whereas Project A is positively correlated, how would this affect the decision? This would tend to reinforce the decision to Project B. If Project B's cash flows were negatively correlated with gross domestic product (GDP), would that influence your assessment of its risk? 3PC has decided to evaluate the riskier project at a 10% rate and the less risky project at an 8% rate. a. What are the expected values of the annual cash flows from each project? Do not round intermediate calculations. Round your answers to the nearest dollar. What is the coefficient of variation (CV) for each project? Do not round intermediate calculations. Round your answers to two decimal places. Coefficient of variation b. What is the risk-adjusted NPV of each project? Do not round intermediate calculations. Round your answers to the nearest cent. Risk-adjusted NPV c. If it were known that Project B is negatively correlated with other cash flows of the firm whereas Project A is positively correlated, how would this affect the decision? This would tend to reinforce the decision to Project B. If Project B's cash flows were negatively correlated with gross domestic product (GDP), would that influence your assessment of its risk
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