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 $6,500 0.2 $0 0.6 6,750 0.6 6,750 0.2 7,000 0.2 17,000 BPC has decided to evaluate the riskier project at 13% and the less-risky project at 9%. a. 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 (OB) is $5,444 and its coefficient of variation (CVB) is 0.73. What are the values of (CA) and (CVA)? Round your answer to two decimal places. OA = $ CVA = b. Based on the risk-adjusted NPVs, which project should BPC choose? -Select- c. If you knew that Project B's cash flows were negatively correlated with the firm's other cash flows, but Project A's cash flows were positively correlated, how might this affect the decision? -Select- If Project B's cash flows were negatively correlated with gross domestic product (GDP), while A's cash flows were positively correlated, would that influence your risk assessment? -Select