flows begin $1$ year after the initial investment and are subject to the following probability distributions:

Project A

BPC has decided to evaluate the riskier project at $11\%$ and the less$-$risky project at $8\%.$

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

Project A: $,$$

Project B: $,$$

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?

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?