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please do not copy other chegg answers! they were all wrong! please answer the ones marked wrong The Butler-Perkins Company (BPC) must decide between two
please do not copy other chegg answers! they were all wrong! please answer the ones marked wrong
The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $7,000 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probabllity distributions: BPC has decided to evaluate the riskler project at 1196 and the less-risky project at 896 . The data has been collected in the Microsoft Excel Oniline flie below. Open the spreadsheet and perform the required analysis to answer the questions below. a. What is each project's expected annual cash flow? Round your answers to two decimal places: Project A: $ Project B: 5 Project B 's standard deviation (8) is $6,131.88 and its coefficient of variation (CB) is 0.77. What are the values of (A) and (CVA)? Round your answers to two decimal places. A=5CVA= b. Based on the risk-adjusted NPVs, which project should BPC choose? c. If you knew that Project B'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? 9 If Project B's cash fows were negatively correlated with gross domestic product (GDP), while A's cash flows Step by Step Solution
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