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The Butler-Perkins Company (BPC) must decide between twomutually exclusive projects. Each costs $7,000 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$6,5000.2$0 0.67,0000.67,000 0.27,5000.217,000 BPC has decided to evaluate the riskier project at 13% and theless-risky project at 9%.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 $5,426 and itscoefficient of variation (CVB) is 0.71. What are thevalues of (?A) and (CVA)? Round your answerto two decimal places.?A = $CVA =
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