Question: ex The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,750 and has an expected life of years. Annual project nows

ex
ex The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects.
Each costs $6,750 and has an expected life of years. Annual project

The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,750 and has an expected life of years. Annual project nows 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 $6,500 0.2 $0 0.6 56,750 0.6 56,750 0.2 $7,000 0.2 $18,000 BPC has decided to evaluate the riskier project at 12% and the less-risky project at 9%. 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. X Open spreadsheet a. What is each project's expected annual cash flow? Round your answers to two decimal places Project AS 6750 Project : $ 111.80 Project B's standard deviation (m) s 55,797.84 and its coefficient of vanation (CV) 0.76. What are the values of (o) and (CV)? Round your answers to two decimal places As 7650 UD 034) U. 30,5 0.2 $7,000 0.2 $18,000 BPC has decided to evaluate the riskier project at 12% and the less risky project at 9%. The data has been collected in the Microsoft Excel Online below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. What is each project's expected annual cash flow? Round your answers to two decimal places Project AS 6750 Project : $ 111.80 Project B's standard deviation (0) * $5,797.84 and its coefficient of variation (CV5 0.76. What are the values of (0%) and (CVJ7 Round your answers to two decimal places A-$ 7650 CVA- b. Based on the risk adjusted NPVs, which project should BPC choose? c. Il you knew that Project B's cash flows were negatively correlated with the firm's other cash flow, but Project A's cash flows were positively corrested, how might this affect the decision

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