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# Risky Cash Flows The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs $6,250 and has an expected life of 3 years. Annual net cash flows Risky Cash Flows The Bartram-Pulley Company (BPC) must decide between two mutually exclusive investment projects. Each project costs$6,250 and has an expected life of 3 years. Annual net cash flows from each project begin 1 year after the initial investment is made and have the following probability distributions:

 PROJECT A PROJECT B Probability Net CashFlows Probability Net CashFlows 0.2 $6,000 0.2$ 0 0.6 6,750 0.6 6,750 0.2 8,000 0.2 17,000

BPC has decided to evaluate the riskier project at a 11% rate and the less risky project at a 10% rate.

What is the expected value of the annual net cash flows from each project? Round your answers to nearest dollar.

 Project A Project B Net cash flow 

What is the coefficient of variation (CV)? (Hint: ÏB = $5,444 and CVB = 0.73.)  Ï (to the nearest whole number) CV (to 2 decimal places) Project A$

 Project A $Project B$