The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,500 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

Project A			Project B
Probability	Cash Flows		Probability	Cash Flows
0.2	$5,750		0.2	$0
0.6	$6,500		0.6	$6,500
0.2	$7,250		0.2	$18,000

BPC has decided to evaluate the riskier project at 13% and the less-risky project at 10%. 

What is each project's expected annual cash flow? Round your answers to two decimal places.

Project B's standard deviation (σ_B) is $5,822.37 and its coefficient of variation (CV_B) is 0.75. What are the values of (σ_A) and (CV_A)? Round your answers to two decimal places.

σ_A = $  

CV_A =

Answer rating: 100% (QA)

a 1Project A 025750066500027... View the full answer