The Bartram$-$Pulley Company $($BPC$)$ must decide between two mutually exclusive investment projects. Each project costs $$7,000$ and has an expected life of $3$ years, Annual cash

flows from each project begin $1$ year after the initial investment is made and have the following probability distributions:

BPC has decided to evaluate the riskier project at an $11\%$ rate and the less risky project at a $9\%$ rate.

a$.$ What are the expected values of the annual cash flows from each project? Do not round intermediate calculations. Round your answers to the nearest dollar.

Project A

Project B

Expected annual cash flow

$

What is the coefficient of variation $($CV$)$ for each project? Do not round intermediate calculations. Round your answers to two decimal places.

Project A

Project B

Coefficient of variation

b$.$ What is the risk$-$adjusted NPV of each project? Do not round intermediate calculations, Round your answers to the nearest cent.

Risk$-$adjusted NPV

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 $B.$

If Project $B^{\text{'}}$ s cash flows were negatively correlated with gross domestic product $($GDP$),$ would that influence your assessment of its risk?