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The Butler - Perkins Company ( BPC ) must decide between two mutually exclusive projects. Each costs $ 6 , 5 0 0 and has
The ButlerPerkins Company BPC must decide between two mutually
exclusive projects. Each costs $ and has an expected life of years.
Annual project cash flows begin year after the initial investment and are
subject to the following probability distributions:
BPC has decided to evaluate the riskier project at and the lessrisky
project at The data has been collected in the Microsoft Excel Online file
below. Open the spreadsheet and perform the required analysis to answer the
questions below.
Open spreadsheet
a What is each project's expected annual cash flow? Round your answers
to two decimal places.
Project A: $
Project B: $
Project Bs standard deviation is $ and its coefficient of
variation is What are the values of and Round
your answers to two decimal places.
$
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