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The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,750 and has an expected life of 3 years. Annual project cash

The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,750 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:

Project A Project B
Probability Cash Flows Probability Cash Flows
0.2 $6,500 0.2 $0
0.6 $6,750 0.6 $6,750
0.2 $7,000 0.2 $17,000

BPC has decided to evaluate the riskier project at 11% and the less-risky project at 8%.

  1. What is each project's expected annual cash flow? Round your answers to two decimal places. Project A. $ Project B. $ Project B's standard deviation (?B) is $5,444 and its coefficient of variation (CVB) is 0.73. What are the values of (?A) and (CVA)? Round your answer to two decimal places. ?A = $ CVA =

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