The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $7,0

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answerhappygod
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The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $7,0

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The Bartram-Pulley Company (BPC) must decide between twomutually exclusive investment projects. Each project costs $7,000and has an expected life of 3 years. Annual net cash flows fromeach project begin 1 year after the initial investment is made andhave the following probability distributions:
BPC has decided to evaluate the riskier project at a 13% rateand the less risky project at a 9% rate.
What is the expected value of the annual cash flows from eachproject? Do not round intermediate calculations. Round your answersto the nearest dollar.
What is the coefficient of variation (CV)?(Hint: σB=$5,096.57 andCVB=$0.70.) Do not round intermediate calculations.Round σ values to the nearest cent and CV values to two decimalplaces.
What is the risk-adjusted NPV of each project? Do not roundintermediate calculations. Round your answers to the nearestcent.
If it were known that Project B is negatively correlated withother cash flows of the firm whereas Project A is positivelycorrelated, how would this affect the decision?
This would tend to reinforce the decisionto -Select-acceptrejectItem 9 Project B.
If Project B's cash flows were negatively correlated with grossdomestic product (GDP), would that influence your assessment of itsrisk?
-Select-YesNoItem 10
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