Question: The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $6,000 and has an expected Me of 3 years. Annual

 The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment
projects. Each project costs $6,000 and has an expected Me of 3

The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $6,000 and has an expected Me of 3 years. Annual net cash flows from each profect begin 1 year anter the initial invesument is made and have the following probabilty distributions: BPC has decided to evaluate the riskier project at an 11% rate and the less risky project at an 8% rate. a What is the expected walie of the annual cash flows from each project? Do not round intermediate caloulations. Round your answers to the nearest doilar and CV values to two decimal places. c. If it were known that Project B is negatively correlated with other cash flows of the firm whereas Project A is positively correlated, how would this affed decision? This would tend to reinforce the decision to Project B. If Project B's cash flows were negatively correlated with gross domestic product (GDP), would that influence your assessment of its risk

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