Question: please help Risk and probability Micro Pub, Inc., is consider the purchase of one of two microfilm cameras, R and S. Both should provide benefits
Risk and probability Micro Pub, Inc., is consider 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 retum and probabilities for pessimistic most likely, and optimistic results om Data Table (Cick on the loon located on the top right comer of the datatable below in order to copy its contents into a spreadsheet) a. Determine the range for the role 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? 3. The range for the rate of retum for camera is O. (Round to the nearest whole numbet) The range for the rate of retum for camera Sis L. Round to the nearest whole number) b. The value of the expected return for camera I (Round to two decimal places.) The value of the expected return for cameras &% (Round to two decimal places) c. Which camotn purchase is niskier? Why? (Select from the drop-down menus.) is riskler because it has range for the rate of retum Camera R Probability Amount $3,000 Cameras Amount Probability 53,000 100 1.00 Inti investment Annual rate of return Pessimisti Most likely Optimistic 10% 27% 0.29 0.37 0.34 10% 20% 33% 0.25 0.59 0.16 The purchase of 30% camera Point Done cameras
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