Risky Cash Flows The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $6,250 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 Cash Flows Probability Cash Flows 0.2 $5,000 0.2 $ 0 0.6 6,750 0.6 6,750 0.2 8,000 19,000 BPC has decided to evaluate the riskier project at a 13% rate and the less risky project at a 10% rate. a. What is the expected value of the annual cash flows from each project? Do not round intermediate calculations. Round your answers to the nearest dollar Project A Project B Net cash flow 0.2 $ What is the coefficient of variation (CV)? (Hint: $6,157.52 and CV-50.78.) Do not round intermediate calculations. Round o values to the nearest cent and CV values to two decimal places. 0 CV Project A Project b. What is the risk-adjusted NPV of each project? Do not round intermediate calculations. Round your answers to the nearest cent. $ 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 select Project If Project B's cash flows were negatively correlated with gross domestic product (GDP), would that influence your assessment of its risk