FIN 419 EDU Seek Your Dream/fin419edu.com
FOR MORE CLASSES VISIT www.fin419edu.com 1) Risk and probability Micro-pub, Inc., is considering the purchase of one of two microfilm cameras, R and S. Both should provide benefits over a10-year period, and each requires an initial investment of $4,000. Management has constructed the following table of elements of rates of return and possibilities for pessimistic, most likely, and optimistic results. 2) Capital asset princing model (CAPM) Use the capital asset princing model to find the required reurn. 3)a. What single investment made today, annual interest, will be worth $3,500 at the end of 10 years? b. What is the present value is $3,500 to be received at the end of 10 years if the discount rate is 6%?
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