SlideShare a Scribd company logo
1 of 1
Download to read offline
The Bartram-Pulley Company (BPC) must decide between two mutually exelusive investment
projects. Each project costs $5, 750 and has an expected Me of 3 years. Annual casl fiows from
each project begin 1 year after the initial investment is made and have the following probability
distributions: BPC has decided to evaluate the riskier project at a 12% rate and the less risky
project ot a 10% rate. a. What are the expected values of the annual cash flows from each
project? Do not round intermediate calculatiens. Round your answers to the nearest dollar. What
is the coeffieient of variabon (CV) for each project? Do not round intermediate colculations.
Aound your answees to two dik imbl places Coefficient of variation 6. What is the risk-odjusted
NPV of each project? Do not round intemediate calculations. Round your answers to the nearest
cent Riskcadjusted NW This wauld tend to reinforce the decision to Project 0. If Project b's cach
fow were negatively carrelated with grois domestic product (GDe). would that inficence your
asseisinent of its tisk?

More Related Content

Similar to The Bartram-Pulley Company (BPC) must decide between two mutually exe.pdf

Presentation on capital budgeting
Presentation on capital budgetingPresentation on capital budgeting
Presentation on capital budgeting
Ashima Thakur
 
Economicx
EconomicxEconomicx
Economicx
victor okoth
 

Similar to The Bartram-Pulley Company (BPC) must decide between two mutually exe.pdf (11)

Capital budgeting
Capital budgetingCapital budgeting
Capital budgeting
 
Presentation on capital budgeting
Presentation on capital budgetingPresentation on capital budgeting
Presentation on capital budgeting
 
Capital budgetingtraining
Capital budgetingtrainingCapital budgetingtraining
Capital budgetingtraining
 
Chapter18
Chapter18Chapter18
Chapter18
 
Chapter18 International Finance Management
Chapter18 International Finance ManagementChapter18 International Finance Management
Chapter18 International Finance Management
 
Capitalbudgeting
CapitalbudgetingCapitalbudgeting
Capitalbudgeting
 
Fin 534 week 7 quiz
Fin 534 week 7 quizFin 534 week 7 quiz
Fin 534 week 7 quiz
 
Capital budgeting
Capital budgetingCapital budgeting
Capital budgeting
 
Economicx
EconomicxEconomicx
Economicx
 
Pm 6
Pm 6Pm 6
Pm 6
 
Fin 534 chapter 10
Fin 534 chapter 10Fin 534 chapter 10
Fin 534 chapter 10
 

More from INFO952279

The code below doesn�t work as it�s supposed to. Fix the functi.pdf
 The code below doesn�t work as it�s supposed to. Fix the functi.pdf The code below doesn�t work as it�s supposed to. Fix the functi.pdf
The code below doesn�t work as it�s supposed to. Fix the functi.pdf
INFO952279
 
The Case of Amanda Jones wehulance by of the emergency depurtince.pdf
 The Case of Amanda Jones wehulance by of the emergency depurtince.pdf The Case of Amanda Jones wehulance by of the emergency depurtince.pdf
The Case of Amanda Jones wehulance by of the emergency depurtince.pdf
INFO952279
 

More from INFO952279 (20)

The chemokine receptor on the surface of B cells responsible for thei.pdf
 The chemokine receptor on the surface of B cells responsible for thei.pdf The chemokine receptor on the surface of B cells responsible for thei.pdf
The chemokine receptor on the surface of B cells responsible for thei.pdf
 
The code below doesn�t work as it�s supposed to. Fix the functi.pdf
 The code below doesn�t work as it�s supposed to. Fix the functi.pdf The code below doesn�t work as it�s supposed to. Fix the functi.pdf
The code below doesn�t work as it�s supposed to. Fix the functi.pdf
 
The CEC of a soil sample is 21cmolckg, so the soil can adsorb 21cmol.pdf
 The CEC of a soil sample is 21cmolckg, so the soil can adsorb 21cmol.pdf The CEC of a soil sample is 21cmolckg, so the soil can adsorb 21cmol.pdf
The CEC of a soil sample is 21cmolckg, so the soil can adsorb 21cmol.pdf
 
The Case of Amanda Jones wehulance by of the emergency depurtince.pdf
 The Case of Amanda Jones wehulance by of the emergency depurtince.pdf The Case of Amanda Jones wehulance by of the emergency depurtince.pdf
The Case of Amanda Jones wehulance by of the emergency depurtince.pdf
 
The capital allocation process involves the transfer of capital among.pdf
 The capital allocation process involves the transfer of capital among.pdf The capital allocation process involves the transfer of capital among.pdf
The capital allocation process involves the transfer of capital among.pdf
 
The Blundine Deportment of Luonco Company has the following cont sivd.pdf
 The Blundine Deportment of Luonco Company has the following cont sivd.pdf The Blundine Deportment of Luonco Company has the following cont sivd.pdf
The Blundine Deportment of Luonco Company has the following cont sivd.pdf
 
The below describes slow block to polyspermy A sperm cell membrane f.pdf
 The below describes slow block to polyspermy A sperm cell membrane f.pdf The below describes slow block to polyspermy A sperm cell membrane f.pdf
The below describes slow block to polyspermy A sperm cell membrane f.pdf
 
The average return for large-cap domestic stock funds over three year.pdf
 The average return for large-cap domestic stock funds over three year.pdf The average return for large-cap domestic stock funds over three year.pdf
The average return for large-cap domestic stock funds over three year.pdf
 
The applicable tax rate is 25. There are no other temporary or perma.pdf
 The applicable tax rate is 25. There are no other temporary or perma.pdf The applicable tax rate is 25. There are no other temporary or perma.pdf
The applicable tax rate is 25. There are no other temporary or perma.pdf
 
The AV node delay occurs on the EKG during the P wave between the P w.pdf
 The AV node delay occurs on the EKG during the P wave between the P w.pdf The AV node delay occurs on the EKG during the P wave between the P w.pdf
The AV node delay occurs on the EKG during the P wave between the P w.pdf
 
The Aggregate Supply () in the economy is the output of all the busin.pdf
 The Aggregate Supply () in the economy is the output of all the busin.pdf The Aggregate Supply () in the economy is the output of all the busin.pdf
The Aggregate Supply () in the economy is the output of all the busin.pdf
 
The animals in temperate grassland have adaptions including Thicker t.pdf
 The animals in temperate grassland have adaptions including Thicker t.pdf The animals in temperate grassland have adaptions including Thicker t.pdf
The animals in temperate grassland have adaptions including Thicker t.pdf
 
The application of commercial marketing technologies to the analysis,.pdf
 The application of commercial marketing technologies to the analysis,.pdf The application of commercial marketing technologies to the analysis,.pdf
The application of commercial marketing technologies to the analysis,.pdf
 
The annotation that is used to identify the primary key attribute of .pdf
 The annotation that is used to identify the primary key attribute of .pdf The annotation that is used to identify the primary key attribute of .pdf
The annotation that is used to identify the primary key attribute of .pdf
 
The amount of cash paid for Selling and Administrative expenses durin.pdf
 The amount of cash paid for Selling and Administrative expenses durin.pdf The amount of cash paid for Selling and Administrative expenses durin.pdf
The amount of cash paid for Selling and Administrative expenses durin.pdf
 
The Allwardt Trust is a simple trust that correctly uses the calendar.pdf
 The Allwardt Trust is a simple trust that correctly uses the calendar.pdf The Allwardt Trust is a simple trust that correctly uses the calendar.pdf
The Allwardt Trust is a simple trust that correctly uses the calendar.pdf
 
The allele for color blindness (c) is on the X chromosome. C is the w.pdf
 The allele for color blindness (c) is on the X chromosome. C is the w.pdf The allele for color blindness (c) is on the X chromosome. C is the w.pdf
The allele for color blindness (c) is on the X chromosome. C is the w.pdf
 
The allele for color blindness (c) is on the X chromosome. C is the.pdf
 The allele for color blindness (c) is on the X chromosome. C is the.pdf The allele for color blindness (c) is on the X chromosome. C is the.pdf
The allele for color blindness (c) is on the X chromosome. C is the.pdf
 
The agent, host, and environment play key roles in the spread of infe.pdf
 The agent, host, and environment play key roles in the spread of infe.pdf The agent, host, and environment play key roles in the spread of infe.pdf
The agent, host, and environment play key roles in the spread of infe.pdf
 
The age of children in kindergarten on the first day of school is uni.pdf
 The age of children in kindergarten on the first day of school is uni.pdf The age of children in kindergarten on the first day of school is uni.pdf
The age of children in kindergarten on the first day of school is uni.pdf
 

Recently uploaded

The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 

Recently uploaded (20)

HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptxHMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
HMCS Vancouver Pre-Deployment Brief - May 2024 (Web Version).pptx
 
How to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POSHow to Manage Global Discount in Odoo 17 POS
How to Manage Global Discount in Odoo 17 POS
 
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.
 
How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17How to Create and Manage Wizard in Odoo 17
How to Create and Manage Wizard in Odoo 17
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
Single or Multiple melodic lines structure
Single or Multiple melodic lines structureSingle or Multiple melodic lines structure
Single or Multiple melodic lines structure
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
Philosophy of china and it's charactistics
Philosophy of china and it's charactisticsPhilosophy of china and it's charactistics
Philosophy of china and it's charactistics
 
Interdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptxInterdisciplinary_Insights_Data_Collection_Methods.pptx
Interdisciplinary_Insights_Data_Collection_Methods.pptx
 
Wellbeing inclusion and digital dystopias.pptx
Wellbeing inclusion and digital dystopias.pptxWellbeing inclusion and digital dystopias.pptx
Wellbeing inclusion and digital dystopias.pptx
 
ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.
 
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
80 ĐỀ THI THỬ TUYỂN SINH TIẾNG ANH VÀO 10 SỞ GD – ĐT THÀNH PHỐ HỒ CHÍ MINH NĂ...
 
Understanding Accommodations and Modifications
Understanding  Accommodations and ModificationsUnderstanding  Accommodations and Modifications
Understanding Accommodations and Modifications
 
Food safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdfFood safety_Challenges food safety laboratories_.pdf
Food safety_Challenges food safety laboratories_.pdf
 
Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
Beyond_Borders_Understanding_Anime_and_Manga_Fandom_A_Comprehensive_Audience_...
 
FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024FSB Advising Checklist - Orientation 2024
FSB Advising Checklist - Orientation 2024
 
Basic Intentional Injuries Health Education
Basic Intentional Injuries Health EducationBasic Intentional Injuries Health Education
Basic Intentional Injuries Health Education
 
Graduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - EnglishGraduate Outcomes Presentation Slides - English
Graduate Outcomes Presentation Slides - English
 

The Bartram-Pulley Company (BPC) must decide between two mutually exe.pdf

  • 1. The Bartram-Pulley Company (BPC) must decide between two mutually exelusive investment projects. Each project costs $5, 750 and has an expected Me of 3 years. Annual casl fiows from each project begin 1 year after the initial investment is made and have the following probability distributions: BPC has decided to evaluate the riskier project at a 12% rate and the less risky project ot a 10% rate. a. What are the expected values of the annual cash flows from each project? Do not round intermediate calculatiens. Round your answers to the nearest dollar. What is the coeffieient of variabon (CV) for each project? Do not round intermediate colculations. Aound your answees to two dik imbl places Coefficient of variation 6. What is the risk-odjusted NPV of each project? Do not round intemediate calculations. Round your answers to the nearest cent Riskcadjusted NW This wauld tend to reinforce the decision to Project 0. If Project b's cach fow were negatively carrelated with grois domestic product (GDe). would that inficence your asseisinent of its tisk?