Question: Risk and probability Micro Pub Inc is considering the purchase of one of two microfilm canotas. Rand S Both should provide bienetits over a 10-year
Risk and probability Micro Pub Inc is considering the purchase of one of two microfilm canotas. Rand S Both should provide bienetits over a 10-year pened and each requires an initial investment of 54 000 Management has constructed the following table of estimates of rates of return and probabilities for pessimistic most Tikely, and optimistic results m a Determine the range for the rate of toturn for onch of the two cameras b. Determine the value of the expected return for each camera c. Which camera purchase is riker? Why? a. The range for tho tato ot return for camera Ris D Rund to the meintest whole number) Data Table (Click on the icon heren order to copy the contents of the datatable below into spreadsheet) Camera R Cameras Amount Probability Amount Probability Initiation 50.000 54 000 100 Arual rate of tim posite TO 024 24 025 Most likely 2016 041 25 052 Ontum 309 0:35 023 Print Done Done Enter your answer in the answer box and
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
