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The Butler$-$Perkins Company $($BPC$)$ must decide between two mutually exclusive projects. Each project has an initial after$-$tax cash outflow of $$6,750$ and

has an expected life of $3$ years. Annual project after$-$tax cash flows begin $1$ year after the initial investment and are subject to the following probability

distributions:

BPC has decided to evaluate the riskier project at $13\%$ and the less$-$risky project at $9\%.$

a$.$ What is each project's expected annual after$-$tax cash flow? Round your answers to the nearest cent.

Project B$\text{'}$s standard deviation $({}_B)$ is $$6,158$ and its coefficient of variation $(C{V}_B)$ is $0\mathrm{.}78.$ What are the values of ${}_A$ and $C{V}_A?$ Do not round

intermediate calculations. Round your answer for standard deviation to the nearest cent and for coefficient of variation to two decimal places.

${}_A$:

$

$C{V}_A$:

b$.$ Based on the risk$-$adjusted NPVs$,$ which project should BPC choose?

$-$Select$-$

c$.$ If you knew that Project B$\text{'}$s cash flows were negatively correlated with the firm's other cash flows, but Project A$\text{'}$s cash flows were positively

correlated, how might this affect the decision?

If Project B$\text{'}$s cash flows were negatively correlated with gross domestic product $($GDP$),$ while A$\text{'}$s cash flows were positively correlated, would that

influence your risk assessment?

$-$Select$-$