The BP Company (BPC) must decide between two mutually exclusive projects. Each costs $7,000 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions:

Probability	Project A Cashflows	Project B Cashflows
0.2	$6,750	$0
0.6	7,000	7,000
0.2	7,250	17,000

BPC has decided to evaluate the riskier project at 11% and the less-risky project at 9%.

A. What is each project's expected annual cash flow? Round your answers to two decimal places.

Project A $Blank 1

Project B $Blank 2

B. Project B's standard deviation (_B) is $5,426 and its coefficient of variation (CV_B) is 0.71. What are the values of (_A) and (CV_A)? Round your answer to two decimal places.

_A = $Blank 3

CV_A = Blank 4

C. Based on the risk-adjusted NPVs, which project should BPC choose? Blank 5 (A/B)