ERAU Corporate Finance Markets Risk & Return Range of The Rates of Return Worksheet Hello,Here are the instructions for this assignment:Sky Fly, Inc is con

ERAU Corporate Finance Markets Risk & Return Range of The Rates of Return Worksheet Hello,Here are the instructions for this assignment: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%

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?Assume that expansion Y most
likely outcome is 21% per year and that all other facts remain the
same. Does this change your investment choice answer? Why?What are the ethical considerations that Sky Fly’s managers should observe when deciding between the two projects?