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The Butler.Perkins Company (BPC) must decide between two mutually exelusive projects. Each costs $6,500 and has an expected life of 3 years. Annual project cash

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The Butler.Perkins Company (BPC) must decide between two mutually exelusive projects. Each costs $6,500 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions: BPC has decided to evaluate the riskjer project at 13% and the less-risky project at B\%. The data has been collected in the Microsot Excer Online fie below. Open the spreadsheet and perform the required analysis to answer the questions below. a. What is each project's expected annual cash flow? Round your answers to two decimal places. Project A:$ Project 8:$ Project B's standard deviation (B) is $5,464.43 and its coefficient of variation (CVB) is 0.75. What are the values of ( A) and (CVA) ? Round your answers to two decitral places. oA=$cVA= b. Based on the risk-adjusted Nevs, which project should BPC choose? c. If you knew that Project B's cash flows were negatively correlated with the firm's other cash flow, but Project A's cash fows were positively correlated, how might this affect the decision? If Project B's cash fows were negatively correlated with gross domestic product (GDP), while A's cash flows were positively correlated, would that influence your risk assessment

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