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Saree Submit Assignment for Grading Questions Problem 12.12 Project Risk Analysis) Question of 10 Check My Work foreman 2 0 ebook The Butler-Perkins Company (BPC)

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Saree Submit Assignment for Grading Questions Problem 12.12 Project Risk Analysis) Question of 10 Check My Work foreman 2 0 ebook The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each project has an initial outflow of $6.750 and has an expected of 2 years Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions: . O Project A Projects Probability Cash Flows Probability Cash Flows O 0.2 56,000 10 6,750 0.6 6,750 02 7.500 0.2 17.000 SPC has decided to evaluate the riskier project at 12 and the less risky project at 9%. What is mach project's expected annual cash flow? Round your answers to the nearest cant. Project $ Project Project's standard deviation (on) te 55,444 and its coefficient of variation (CV) 1 0.73. What are the values of (a) and (CVA)? Do not round intermediate calculations. Round your answer for standard deviation to the nearest cent and for coefficient of variation to two decimal places CVA: b. Based on their misk-adjusted NPV, which project should BPC choose? If you know that Project's cash flows were negatively correlated with the firm's other cash flow, whereas Project Asos were pot correlated how might this affect the decision? Projects cash flows were negatively correlated with gross domestic product (GDP), while A's fons were positively correlated would that influence your risk assessment Select Chuck My Work (emaining)

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