Business, 20.07.2020 01:01 aweller3898

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: Project A Project B
Probability Cash Flows Probability Cash Flows
0.2 $6,500 0.2 $0
0.6 $6,750 0.6 $6,750
0.2 $7,000 0.2 $17,000
BPC has decided to evaluate the riskier project at 11% and the less-risky project at 8%.
1. What is each project's expected annual cash flow? Round your answers to two decimal places.
A. Project A. $
B. Project B. $
2. Project B's standard deviation (B) is $5,444 and its coefficient of variation (CVB) is 0.73. What are the values of (A) and (CVA)? Round your answer to two decimal places.
A = $
CVA =

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