Problem 12-11 Project risk anelysis f 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to he following probability Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,750 and has expected life Project A Project Probability Cash Flows Probability Cash Flows $6.500 .2 0.: t6.750 0.6 0.6 s6,750 0.2 $7.000 0.2 $19,000 oevaluate the riskier project at 11% and the less-risky project at 10 %. BPC has decided twa decimal places a. What is each project's expected annual cash flaw? Round yaur answers t Project A. $ Project B. .78. What are the values of (DA) and (CVA)? Round yaur answer to twa decimal places. Project B's standard deviatian (as) $6.158 and its coefficient variation (CVB) is cVA = b. risk-adjusted NPVS, which project should BPC choose? Calerts c. Ir you knew that Project B's cash lows were negatively correlated with the firm's other cash flow, whereas Project A's flows were positively correlated, how might this affect the decision? -Select If Praject B's cash flows were negatively correlated with gross domestic product (GDP), while A's flows were positively correlated, would that influence your risk assessment? -Select c. If you knew that Project B's cash flows were negatively correlated with the firm's other cash flow, whereas Project A's flows were positively correlated, how might this affect the decision? -Select TE Daiat ale h fla -Select a naastiualu carwalated with gross domestic product (GDP), while A's flows were positively correlated, would that influence your risk assessment? This would make Project B more appealing. This would make Project B less appealing. Dacod an thai risk-adjusted NPVS, which project should BPC choose? -Select Project A Project B