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The Eutler.Penkins Company (BPC) must decide between two mutually exclutive projects, Each project has an initial after-tax cash outfitw of $6,750 and has an expected

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The Eutler.Penkins Company (BPC) must decide between two mutually exclutive projects, Each project has an initial after-tax cash outfitw of $6,750 and has an expected life of 3 years. Annual project aftertax cash flows begin 1 year after the initial investment and are subject to the following probability distributions: BAC has oecided to evaloate the risker project at 13% and the less+risicy project at 9%. a. What is each project's expected annual after-tax cash flow? Round your answers to the nearest cent. Project A: Project B: 5 Project Bs standard deviation (O0) is $5,444 and its coefficient of variation (CVn) is 0.73. What are the values of oj and CVA ? Do not round intermediate calculations. Round your answer for standard deviation to the nearest cent and for coefficient of variation to two decimal piaces. b. Based on the risk-adjusted NPVs, which project should BPC choose? c. If you knew that Project B's cash flows were negatively correlated with the firm's other cash flows, but Project A's cash flows were positively correlated. how miaht thic affact tha durieion? If Project B's cash flows were negatively correlated with gross domestic product (GDP), while A's cash flows were positively correlated, would that influence vour risk assecemant? intermediate calculations. Round your answer for standard deviation to the nearest cent and for coefficient of variation to two decimal places. oat cVa: b. Based on the risk-adjusted NPVs, which project should BPC choose? c. If you knew that Project B's cash flows were negatively correlated with the firm's other cash flows, but Project A's cash flows were positively correlated. how. mistit thic affort the devieinn? irrelated with gross domestic product (GDP), while A's cash flows were positively correlated, would Continue without saving

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