ge Leaming ex.html?deploymentid=5932632365234278943577737914&SN 97813379096868d2994538797&snapshotld-20863301 M Connect login Log in to Canvas Scentury Dashboard > pema Ethicales For 6 Red Flags Your * INDTA Q Search this ty: Project Risk Analysis Video Excel Online Structured Activity: Project risk analysis The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $5,750 and has an expected of 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions: Project Project B Probability Cash Flows Probability Cash Flows 0.2 $6.500 0-2 30 0.6 $6,750 05 56,750 0.2 $7,000 0.2 $18,000 BPC has decided to evaluate the riskler project at 134 and the less risky project at 8. 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 Da Nel O G ED 3 D 905 31/22 DOL F FO F10 FID ge learning + exhtml?deploymentid=59326323652 94357773791485BN 97813379096868d 9945387978stapshotid=2006330& -M Connect login Log in to Carwas Scentsy Dachboard > ncp emal Ethical issues For 6 Red Flags Your SNDTAP Q Search this ty: Project Analysis Open spreadsheet a. What is each project's expected annual cash flow? Round your answers to two decimal places, Project A: $ Project B: $ Project B's standard deviation (s) is $5,797.84 and its coeffident of variation (CV) is 0.76. What are the values of (0) and (CV) Round your answers to two decimal places. DA-5 CVA- b. Based on the risk adjusted NPVs, which project should BPC choose? c. If you know that Project 8's cash flows were negatively correlated with the firm's other cash flow, but Project A's cash flows were positively correlated, how might this affect the decision? If Protect B's cash flows were negatively correlated with cross domestic product (GDP), while A's cash flows were positively Hadi Next o t DOLL Arial 10 5 OM B B Paste ab V A. A AP $ Undo Clipboard Font Alignment B24 fx B $6,750.00 3 $250.00 Project risk analysis 2 3 Costs, Projects A and B 4 Expected life of projects in years) Difference between Project A CFs 6 7 Project A 8 Probability 9 0.2 10 0.6 11 02 12 13 Project B 14 Probability 15 0.2 0.6 Cash Flows $6,500.00 $6.750.00 $7.00000 Cash Flows 50.00 56 750 00 $18,000.00 19 Sheet + an WO Type here to search O BI > about:blank Apps M Gmail YouTube Maps New Tab M Connect login Log in to Canvas Scentsy Dashboard ht Excel template Saved Home Formulas Data Review View Help Tell me what you want to do Anal - 10 La Currency 1 U D lil Paste DIJU 1941 A- A A $. % Conditional Format Formatting as Table Clipboard Font Alignment Number Tables fa c D Discount rate, risky project Discount rate, less risky project 13.00% 800% Formulas Calculation of Expected CF, SD and CV: Project A Expected annual cash flow Standard deviation (SD) Coefficient of variation (CV) Project Expected annual cash flow Standard deviation (SD) Coefficient of variation (CV) #NIA #N/A #N/A #N/A 59,598 83 #DIV/0! Which project is riskier? Project A risk-adjusted discount rate Project Brisk-adjusted discount rate = #NIA #N/A #NA Sheott + Color Mode Auto Workbook Statistic Type here to search c 3 Excel Online Acts Projet Mind top Cempage Learning X Excel Online Student Work abou blank Apps M Gmail O YouTube 9 Maps $ New Tab M Connect login Log in to Canvas Scentsy Dashboard un x Excel template Saved File Home Insert Formulas Data Review View Help Tell me what you want to do Arial Currency B - 10 1 U D a A A Paste db A Conditional Format Formatting - as Table C $% % nde Clipboard Font Alignment Number Tools -24 A D E B7 Calculation of Risk Adjusted NPVs: 38 NPV 39 NPV. 40 Which project should be chosen? 41 NA NA ANIA 24 15 46 4 10 50 50 B Shoot+ 11 Type here to search O ti G - 3 a