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Excel Online Structured Activity: Project risk analyws The Butler-Perkins Company (BPC) must decide between two mutealy exdusive projects. Each costs $6,500 and has an expected

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Excel Online Structured Activity: Project risk analyws The Butler-Perkins Company (BPC) must decide between two mutealy exdusive projects. Each costs $6,500 and has an expected life of 3 yesrs. Annual project cash flows begin 1 year after the inital imestment and are subject to the following probability distributions: BPC has decided to evaluste the ripier project at 13% and the less-risky project at 9%. The data has been collected in the Microsoft Excel Online file below, open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. whar os eacn projects expeccea annual case nowi mound your answers to cwo pecamar paces. Project A: $ Prolect B: 5 Proyect B's standard deviation (a) is $5,822.37 and its coeffient of variation (CVa) is 0:78. What are the values of (of) and (CVa)? Round your answers to two decritial flaces, A=sCVA= b. Based on the risk-bsjusted Nivis, which project should apc choose? e. If you khew that Project B's cash flows were negatively conelated with the firm's other cash flow, but Project A s's cash flows were pasitively correlated, horw might this affect the decision? If project B's cash flaws were negatively correlated wath yross doniestic product (GDP), while A's cash fiews were positively correlated, would that. intwence your rivk assessment? 42 43 44 43 44 45 4645= 47 48 50 50 52 53

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