Sky Fly, Inc is considering an investment in two different expansions. The following estimates have been...
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Sky Fly, Inc is considering an investment in two different expansions. The following estimates have been calculated for each project. X Y Initial Investment 15,000 15,000 Annual Rate of Return Pessimistic 16% 10% Discussion Most Likely 20% 20% Optimistic 24% 30% Discuss What is the range of the rates of return for each of the projects? Which project is less risky? Why? Which investment would you choose? Why? What does your investment choice say about your feelings towards risk? Sky Fly, Inc is considering an investment in two different expansions. The following estimates have been calculated for each project. X Y Initial Investment 15,000 15,000 Annual Rate of Return Pessimistic 16% 10% Discussion Most Likely 20% 20% Optimistic 24% 30% Discuss What is the range of the rates of return for each of the projects? Which project is less risky? Why? Which investment would you choose? Why? What does your investment choice say about your feelings towards risk?
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