Problem 12-12 Project risk analysis

The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $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:

Project A			Project B
Probability	Cash Flows		Probability	Cash Flows
0.2	$6,000		0.2	$0
0.6	$6,750		0.6	$6,750
0.2	$7,500		0.2	$17,000

BPC has decided to evaluate the riskier project at 11% and the less-risky project at 9%.

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 (B) is $5,444 and its coefficient of variation (CVB) is 0.73. What are the values of (A) and (CVA)? Round your answer to two decimal places. A = $ CVA =