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The autier-Perkins Company (BAC) must decide between two mutually exclusive projects. Each project has an initial after-tax cash outfiow of 36,750 and has an eupected

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The autier-Perkins Company (BAC) must decide between two mutually exclusive projects. Each project has an initial after-tax cash outfiow of 36,750 and has an eupected life of 3 years. Annual project after-tax cash flows begin 1 vear after the initial investment and are subject to the following probsbulity distributans: BPC has decided to evaluate the riskier project at 12% and the less-risky project at 10%. a. What is each project's expected annual after-tax cash flow? Round your answers to the nearest cent. Project A: Project B: s Project B's standard deviation ( 0) is $6,158 and its coefficient of variation (CVB ) is 0.78 . What are the values of 4 and CVA ? Do not round intermediate calculations. Round your answer for standarid deviation to the nearest cent and for coefficient of variation to two decimal places. ons CVA b. Areed an the nisk-adjusted NPVs, which project should BPC choose? c. If you knew that Project B's cash flows were negatively correlated with the firm's other cash fows, but Project A's cash flows were postively correlated, how might this arat the deviline? If Project B's cash flows were negatively correlated with gross domestic product (GDP), while A's tash fows were positively correlated, would that infuence your risk

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