Risky Cash Flows The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $6,000 and has an expected life of 3 years. Annual net cash flows from each project begin 1 year after the initial investment is made and have the following probability distributions: PROJECT A PROJECT B Probability Net Caslh Flows Probability Net Cash Flows 0.2 0.6 0.2 $5,000 6,750 7,500 0.2 0.6 0.2 6,750 16,000 BPC has decided to evaluate the riskier project at a 11% rate and the less risky project at a 9% rate a. What is the expected value of the annual net cash flows from each project? Do not round intermediate calculations. Round your answers to nearest dollar. ProjectA Project B Net cash flow $655 $7250 What is the coefficient of variation (CV)? Do not round intermediate calculations. (Hint:0 $5,097 and CVB-$0.70.) (to the nearest whole number) CV (to 2 decimal places) Project A Project B $5097 7 b. What is the risk-adjusted NPV of each project? Do not round intermediate calculations. Round your answer to the nearest dollar Project A Project B C. If it were known that Project B is negatively correlated with other cash flows of the firm whereas Project A is positively correlated, how would this affect the decision? This would tend to reinforce the decision to accept Project B If Project B's cash flows were negatively correlated with gross domestic product (GDP), would that influence your assessment of its risk