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The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $7,000 and has...

The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $7,000 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 7,000 0.6 7,000  
0.2 7,500 0.2 17,000  

BPC has decided to evaluate the riskier project at 13% and the less-risky project at 9%.

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

    Project A $

    Project B $

    Project B's standard deviation (σB) is $5,426 and its coefficient of variation (CVB) is 0.71. What are the values of (σA) and (CVA)? Round your answer to two decimal places.

    σA = $

    CVA =

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