Question: Excel Online Structured Activity: Project risk analysis and are subject to the following probability distributions: to answer the questions below. Open spreadsheet a . What
Excel Online Structured Activity: Project risk analysis
and are subject to the following probability distributions:
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 A: $
Project B: $
Project Bs standard deviation is $ and its coefficient of variation is What are the values of and Round your answers to two decimal places.
$
b Based on the riskadjusted NPVs which project should BPC choose?
If Project Bs cash flows were negatively correlated with gross domestic product GDP while As cash flows were positively correlated, would that influence your risk assessment?
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