Determine the expected return and the risk

Reference no: EM132208410

Question: Dunder Mifflin Paper Company is examining the purchase of a machine that will cost $50,000. The machine is expected to last 10 years and will have no salvage value. D. Schrute, Assistant to the Regional Manager, mentioned that the firm's interest rate is 15%. Determine the expected return and the risk (St. Dev.) associated with the purchase.

Probability	0.3	0.4	0.3
Annual Benefits	$9,000	$10,500	$12,000

Please show in Excel ( Show the formula please)

Reference no: EM132208410

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