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Micro-Pub. Inc, is considers the purchase of one of two microfilm cameras, R and S. Both should provide benefits over a 10-year period and each
Micro-Pub. Inc, is considers 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: Determine the range for die rate of reran for each of the two cameras. Determine the value of the expected return for each camera. Which camera purchase is riskier? Why? The range for the rate of return for camera R The range for the rate of return for camera The value of the respected return for camera R is The sake of the expected return for camera Which camera purchase is riskier? Why
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