The Butler-Perkins Company (BPC) must decide between two mutually exclusive projects. Each costs $6,750 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 $6,750   0.6 $6,750   0.2 $7,000   0.2 $19,000   BPC has decided to evaluate the riskier project at 12% and the less-risky project at 8%. 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 $6,157.52 and its coefficient of variation (CVB) is 0.78. What are the values of (σA) and (CVA)? Round your answers to two decimal places. σA = $   CVA =

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.