Question: The Butler Perkins Company (BPC) must decide between two mutually exclusive projects . Each costs $6,750 and has an expected life of 3 yearsAnnual project

The Butler Perkins Company (BPC) must decide between two mutually exclusive projects . Each costs $6,750 and has an expected life of 3 yearsAnnual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions:  The Butler Perkins Company (BPC) must decide between two mutually exclusive
projects . Each costs $6,750 and has an expected life of 3

The Butler Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,750 and has an expected life of 3 years. Annual project cash flows begin 1 year after the initial investment and are subject to the following probability distributions: BPC has decided to evaluate the riskier project at 11% and the less - raky project at 8%. The data has been collected in the Microsoft Excel Online file below, Open the spreadsheet and perform the required analysis to nnswer the questions below. Open spreadsheet a. What is each project's expected annual cash flow? Round your answers to two decimal places. Project A: 5 Droject B: 5 decimal places, oA=$ a. What is each project's expected annual cash flow? Round your answers to two decimal places. Project A:\$ Project 8:5 Project B's standard devation (8) is 55.443.80 and its coefficient of variation (CV8)) is 0.73. What are the yalues of (oA) and (CVA) ? Pound your answers to two decimal places. 0A=5 CVA= 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 ftrm's other cash flow, but Project A's cash flows were positively correlated, how meght this affect the decision? If Froject B's cash flows were negatovely correlated wath gross domestic product (cibp), while A's cash flows were positevely cocrelated, would that influence yout risk assessment

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