PROJECT RISK ANALYSIS The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,750...

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PROJECT RISK ANALYSIS
The Butler-Perkins Company (BPC) must decide between twomutually exclusive projects. Each costs $6,750 and has an expectedlife of 3 years. Annual project cash flows begin 1 year after theinitial investment and are subject to the following probabilitydistributions:
Project A Project B
Probability Cash Flows Probability Cash Flows
0.2 $6,250 0.2 $0
0.6 6,750 0.6 6,750
0.2 7,250 0.2 19,000
BPC has decided to evaluate the riskier project at 11% and theless-risky project at 10%.
What is each project's expected annual cash flow? Round youranswers to two decimal places.
Project A $
Project B $
Project B's standard deviation (?_B) is $6,158 and itscoefficient of variation (CV_B) is 0.78. What are thevalues of (?_A) and (CV_A)? Round your answerto two decimal places.
?_A = $
CV_A =

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PROJECT RISK ANALYSISThe Butler-Perkins Company (BPC) must decide between twomutually exclusive projects. Each costs $6,750 and has an expectedlife of 3 years. Annual project cash flows begin 1 year after theinitial investment and are subject to the following probabilitydistributions:Project AProject BProbabilityCash FlowsProbabilityCash Flows0.2$6,2500.2$0 0.66,7500.66,750 0.27,2500.219,000 BPC has decided to evaluate the riskier project at 11% and theless-risky project at 10%.What is each project's expected annual cash flow? Round youranswers to two decimal places.Project A $Project B $Project B's standard deviation (?B) is $6,158 and itscoefficient of variation (CVB) is 0.78. What are thevalues of (?A) and (CVA)? Round your answerto two decimal places.?A = $CVA =

Project A		Project B
Probability	Cash Flows	Probability	Cash Flows
0.2	$6,250	0.2	$0
0.6	6,750	0.6	6,750
0.2	7,250	0.2	19,000