Suppose there are two projects experiencing the following cash flows:

Project A			Project B
Probability	Cash Flows		Probability	Cash Flows
0.2	6000		0.2	0
0.6	6750		0.6	6750
0.2	7500		0.2	18000

a) Calculate the Expected Annual Cash Flow for each project.

b) Given that Project A has a standard deviation of 474 and Project B has a standard deviation of 5797, find the coefficient of variation of each project.

c) Why might a firm pick Project A over B here?