0.2 The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $7,750 and has an expected life of 3 years. Annual cash flows from each project begin 1 year after the initial investment is made and have the following probability distributions: Project A Project B Probability Cash Flows Probability Cash Flows 0.2 $7,000 0.2 $ 0 0.6 7,750 0.6 7,750 0.2 8,500 21,000 BPC has decided to evaluate the riskier project at a 12% rate and the less risky project at a 10% rate. a. What are the expected values of the annual cash flows from each project? Do not round intermediate calculations. Round your answers to the nearest dollar. Project A Project B Expected annual cash flow What is the coefficient of variation (CV) for each project? Do not round intermediate calculations. Round your answers to two decimal places. Project A Project B Coefficient of variation b. What is the risk-adjusted NPV of each project? Do not round intermediate calculations. Round your answers to the nearest cent. Project A Project B Risk-adjusted NPV $ c. If it were known that Project B is negatively correlated with other cash flows of the firm whereas Project A is positively correlated, how would this affect the decision? This would tend to reinforce the decision to Selectv Project B. If Project B's cash flows were negatively correlated with gross domestic product (GDP), would that influence your assessment of its risk? Select c. If it were known that Project B is negatively correlated with ot this affect the decision? This would tend to reinforce the decision to -Select- oject accept If Project B's cash flows were negatively a reject gross If Project B's cash flows were negatively correlated with gross -Select- Yes No