3. Carlos Quintero, Treasurer of X Corp is analyzing an investment on two projects, C and D. The data to
consider are shown below
Initial Investment
Annual Rate of
Return
Pessimistic
Most Likely
Optimistic
Amount
$135,000
39%
27%
25%
Project C
Probability
.30
.45
.25
Amount
$145,000
25%
15%
30%
Project D
Probability
.35
.40
.25
A. Determine the rates of return for each of the two projects. (6 points)