Question: Flextire Manufacturing is considering two mutually exclusive proposals. Each will cost $80,000 and will last 6 years. Cash flows and estimated probabilities are presented below.

Flextire Manufacturing is considering two mutually exclusive proposals. Each will cost $80,000 and will last 6 years. Cash flows and estimated probabilities are presented below. Based on a MARR of 10%, Calculate the risk associated with Proposal B.

Benefits per year	Probability
$17,500	.40
20,500	.35
23,000	.25

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