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P85 (similar to) Question Help Risk and probability Micro-Pub, Inc is considering the purchase of one of two m crotim cameras, R and S Both
P85 (similar to) Question Help Risk and probability Micro-Pub, Inc is considering the purchase of one of two m crotim cameras, R and S Both should provide benents over a 10-year penod, and each requires an initial investment of 55,000 Management has constructed the tellowing table of estimates of rates of return and probabilities for pessimistic, most likely, and optimistic results: a. Determine the rarnge for the rate of return for each of the two carmeras. b, Determine the value of the expectod refurn for each camera e. Which camera purchase is risker? why? a. The range for the rate of return for camera R is 1 1%. (Round to the nearest whole number.) Data Table Click on the icon located on the top-right comer of the deta table below in order to copy its contents into a spredsheet) Camera R Amount Probabili Camera S Amount Probabil $5 D00 Initial investment Annual rate of return 1 D0 S5 DDD 1 00 23% 27% 30% 0.28 0.37 0.35 15% 25% 31% 0.24 0.51 0.25 Most likely Print Done
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