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Micro-Pub, Inc., is considering the purchase of one of twomicrofilm? 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 ofrates of return and probabilities for? pessimistic, most? likely,and optimistic? resultsCamera RCamera SAmountProbabilityAmountProbabilityInitial investment?$3,0001.00?$3,0001.00Annual rate of returnPessimistic21?%0.2116?%0.23Most likely27?%0.4629?%0.57Optimistic31?%0.3332?%0.20?Whichcamera purchase is? riskier? ? Why?
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