Risk analysis Green Energy is considering expanding its investment in renewable energy generation. Two possible types, wind and solar, of energy generation are under review. After investigating the possible outcomes, the company made the estimates shown in the following table:

wind farm solar farm

initial investment 120 million 120 million

annual rate of return

pessimistic 4% -6%

most likely 20% 20%

optimistic 36% 46%

The pessimistic and optimistic outcomes occur with a probablity of 25%, and the most likely outcome occurs with a probability of 50%.

a.Determine the range of the rates of return for each of the two projects.

b.Which project is less risky?

c.If you were making the investment decision, which one would you choose? What does this imply about your feelings toward risk?

d.Assume that solar farm's most likely outcome is 21% per year and that all other facts remain the same. Does this change your answer to part c?

can you please show steps and without using excel.