Video Excel Online Structured Activity: Project risk analysis The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $7,000 and has an expected ife 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 0.6 0.2 $6,250 $7,000 7,750 0.2 0.6 0.2 $0 $7,000 $19,000 has decided to evaluate the riskier project at 12% and the less-risky project at 9%. The data has been collected in the hicrosoft Excel Oli e nie below. Open the spreadsheet and perform the required analysis to answer the questions below Open spreadsheet r answers to two decimal places a. What is each project's expected annual cash flow? Round you Project A: Project B: Project 's standard deviation (Og) is $6,1 31.8. and its coefficient of var ation (CV) Round you want, 077, what are the aues of (a) and QSearch this course el Online Activity: Project risk analysis stion 1 Open spreadsheet a. What is each project's expected annual cash flow? Round your answers to two decimal places Project A:$ Project B: Project B's standard deviation (Oa) is $6,131.88 and its coefficient of variation (CVa) is 0.77. What are the values of (oa) and (CV)? Round your answers to two decimal places. CVA b. Based on the risk-adjusted NPVs, which project should BPC choosei? postively corresared, how you knew that might this affect the decision? Project B's cash flows were negatively correlated with the firm's other cash flow, bust Project A's cash flows were If Project B's cash flows were negatively correlated with gress domestic proktuct (GDP), while A's cash flows were postively correlated, would that influence your risk assessment? Reset Problem Check My Work