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- Excel Online Activity: Project risk analysis Question 1 GO H Video Tools A-Z Excel Online structured Activity Project risk analysis The Butler-Persis Company (PC)

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- Excel Online Activity: Project risk analysis Question 1 GO H Video Tools A-Z Excel Online structured Activity Project risk analysis The Butler-Persis Company (PC) must decide between two mutually exclusive projects. Each costs $6,50 and has an expected ife of 3 years Annual project cash flow begin 1 year after the initial investment and are subject to the following probity distribution ps Project A ps Project Probability Cash Flows 0.2 30 Probability Cash Flows 16.250 016 SEO 02 S7250 0.6 56,250 FREE 7. limited Ited 02 $17,000 DPC has decided to evaluate the risker project at 13% and they proyecto. The data has been collected in the Microsor Excel Online hle below. Open the spreadsheet and perform the required analyes to answer the questions below THE Open Set a What is each projects expected and flow Round your answers to two decimo Project A el Online Activity: Project risk analysis o Non 1 a. What is each project's expected annual cash now? Round your answers to two decimal places Project AS Az Project B: $ Project Bs standard deviation (0) 85,443.80 and its coefficient of variation (CV) 0.73. What are the values of (01) and (ov)? Round your answers to two decimal places DA 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 flow, but Project As cash nows were positively correlated, how might this affect the decision 1 Project b's cash nows were negatively correlated with gross domestic product (GDP), while A's cash flows were positive correlated, would that influence your risk assessment Check My Work Rene

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