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The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $7,000 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 $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:

Project A Project B
Probability Cash Flows Probability Cash Flows
0.2 $6,750 0.2 $0
0.6 $7,000 0.6 $7,000
0.2 $7,250 0.2 $19,000

BPC has decided to evaluate the riskier project at 12% and the less-risky project at 9%.

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

Project A: $ fill in the blank 2

Project B: $ fill in the blank 3

Project B's standard deviation (B) is $6,131.88 and its coefficient of variation (CVB) is 0.77. What are the values of (A) and (CVA)? Round your answers to two decimal places.

A = $ fill in the blank 4

CVA = fill in the blank 5

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