Assignment 12: Chapter 12 End-of-Chapter Problems 8. Problem 12.12 (Project Risk Analysis) The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each project has an initial after-tax cash outflow of $6,500 and has an expected life of 3 years. Annual project after-tax cash flows begin 1 year after the initial investment and are subject to the following probability distributions: BPC has decided to evaluate the riskier project at 13% and the less-risky project at 10%. a. What is each project's expected annual after-tax cash flow? Round your answers to the nearest cent. Project A: Project B: Project B's standard deviation (B ) is $5,464 and its coefficient of variation (CV VB ) is 0.75. What are the values of A and CVV Round your answer for standard deviation to the nearest cent and for coefficient of variation to two decimal places. 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 flows, but Project A's cash flows were positively correlated, how might this affert the derisinn? If Project B's cash flows were negatively correlated with gross domestic product (GDP), while A's cash flows were positively correlated, would that influence your risk assessment