Question: 1 1 Excel Online Structured Activity: Project risk analysis The Butler - Perkins Company ( BPC ) must decide between two mutually exclusive projects. Each
Excel Online Structured Activity: Project risk analysis
The ButlerPerkins Company BPC must decide between two mutually exclusive projects. Each costs $ and has an expected life of years. Annual project cash flows begin year after the initial investment and are subject to the following probability distributions:
Project A Project B
Probability Cash Flows Probability Cash Flows
$ $
$ $
$ $
BPC has decided to evaluate the riskier project at and the lessrisky project at The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Open spreadsheet
What is each project's expected annual cash flow? Round your answers to two decimal places.
Project A: $ fill in the blank
Project B: $ fill in the blank
Project Bs standard deviation sigma B is $ and its coefficient of variation CVB is What are the values of sigma A and CVA Round your answers to two decimal places.
sigma A $ fill in the blank
CVA fill in the blank
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