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Please show all steps and formulas in excel. Thank you. The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each project has an
Please show all steps and formulas in excel. Thank you.
The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each project has an initial outflow of $6,750 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 probability distributions: BPC has decided to evaluate the riskier project at 12% and the less-risky project at 8%. a. What is each project's expected annual cash flow? Round your answers to the nearest cent. Project A: \$ Project B: \$ Project B's standard deviation (B) is $5,798 and its coefficient of variation (CV B) is 0.76. What are the values of (A) and (CVA) ? Do not round intermediate calculations. Round your answer for standard deviation to the nearest cent and for coefficient of variation to two decimal places. A:$ CVA : b. Based on their risk-adjusted NPVs, which project should BPC chooseStep by Step Solution
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