The Butler$-$Perkins Company $($BPC$)$ must decide between two mutually exclusive projects. Each project has an initial after$-$tax cash outflow of $$6,500$ and has an expected

life of $3$ years. Annual project after$-$tax cash flows begin $1$ year after the initial investment and are subject to the following probability distributions:

Project A

BPC has decided to evaluate the riskier project at $13\%$ and the less$-$risky project at $8\%.$

a$.$ What is each project's expected annual after$-$tax cash flow? Round your answers to the nearest cent.

Project A: $,$$

Project B: $,$$

Project B$\text{'}$s standard deviation $(\{$:${}_B)$ is $$5,822$ and its coefficient of variation $(C_B)$ is $0\mathrm{.}78.$ What are the values of ${}_A$ and $C{V}_A?$ Do not round intermediate

calculations. Round your answer for standard deviation to the nearest cent and for coefficient of variation to two decimal places.

${}_A$:

$C{V}_A$ :

b$.$ Based on the risk$-$adjusted NPVs$,$ which project should BPC choose?

c$.$ If you knew that Project B$\text{'}$s cash flows were negatively correlated with the firm's other cash flows, but Project A$\text{'}$s cash flows were positively correlated, how might

this affert the derision?

$[$

If Project B$\text{'}$s cash flows were negatively correlated with gross domestic product $($GDP$),$ while A$\text{'}$s cash flows were positively correlated, would that influence your

rick acsecsment?