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will upvote asap vity Project risk analysis Excel Online Structured Activity: Project risk assis The Butler. Poros Company (oPmust dedde between two mutually exclusive projects.

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vity Project risk analysis Excel Online Structured Activity: Project risk assis The Butler. Poros Company (oPmust dedde between two mutually exclusive projects. Each costs $6,750 and has an expected life of 3 years Annual project cash flows begin I year after the the following probability distributions: Project Probability Cash Flows Project Probability Cash Flows 0.2 $6,500 0.2 $0 0.6 0.6 $6,750 $0,750 0.2 $7,000 0.2 $19,000 BPC has decided to evaluate the riskier project at 11% and the Sess-risky project at 105. The data has been collected for the Microsoft Excel Online file below. Open the spreadsheet and perform questions below Open spreadsheet a. What is cach project's expected annual cash flow Round your answers to two decimal places Project : $ 6250 Project 6:3 7850 Project B's standard deviation (ca) ks $6,157.52 and its coefficient of variation (CV) : 0.78. Wat are the values of (o) and (c) Round your answers to two decimal places DA-5 6157.52X CV- 0.0 b. Based on the risk-adjusted NPVs, which probet should BPC choose? c. If you knew that Project b's cash flows were negatively come ted wide The other flow, but Project shows were positively correlated, how might this affect the decision If Project B's cash flows were negatively correlated with cross domestic product (GDP), while Achows were positively correlated would that influence your risk assessment Atvedt 107 AM Back O Hai - 2

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