Homework: Chapter 8 Homework Save Score: 0 of 1 pt 3 of 11 (6 complete) HW Score: 48.48%, 5.33 of 11 pts P8-5 (similar to) Question Help Risk and probability Micro-Pub, Inc., is considering the purchase of one of two microfilm cameras, R and S. Both should provide benefits over a 10-year period, and each requires an initial investment of $3,000. Management has constructed the following table of estimates of rates of return and probabilities for pessimistic, most likely, and optimistic results: a. Determine the range for the rate of return for each of the two cameras. b. Determine the value of the expected return for each camera c. Which camera purchase is riskier? Why? a. The range for the rate of return for camera Ris%. (Round to the nearest whole number.) Enter your answer in the answer box and then click Check Answer. parts remaining Clear All Check Answer purchase of one of two microfilm cameras. R and S. Both should provide benefits over a 10-year period, and each urn and 1 Data Table ne two ca amera (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) (Round Camera R Amount Probability $3,000 1.00 Camera S Amount Probability $3,000 1.00 Initial investment Annual rate of return Pessimistic Most likely Optimistic 18% 25% 31% 0.29 0.46 0.25 21% 29% 32% 0.17 0.57 0.26 Print Done