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? If Project Bs cash flows were negatively correlated with gross domestic product (GDP), would that influence your assessment of its risk?

Please include excel work for first two questions (Pathway to solution) Thanks!

The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $6,750 and has an expected life of 3 years. Annual cash flows from each project begin 1 year after the initial investment is made and have the following probability distributions: Project A Project B Probability 0.2 0.6 0.2 Cash Flows $6,000 6.750 7,500 Probability 0.2 Cash Flows $0 6,750 18,000 0.6 0.2 BPC has decided to evaluate the riskier project at a 12% rate and the less risky project at a 10% rate. a. What are the expected values of the annual cash flows from each project? What is the coefficient of variation (CV) for each project? (Hint: ob = $5,798 and CVB = 0.76.) Answert Expected CFA = $6,750 Expected CFB = $7,650 CVA = 0.0703. b. What is the risk-adjusted NPV of each project? Answet NPVA = $10,036; NPVB = $11,624