4) Ali is a manufacturer and he wants to choose the better of two investments, X, Y and Z. Each requires an initial outlay of OR 20,000 and each has a most likely annual rate of return of 10%....

Extracted text: 4) Ali is a manufacturer and he wants to choose the better of two investments, X, Y and Z. Each requires an initial outlay of OR 20,000 and each has a most likely annual rate of return of 10%. Management has made pessimistic and optimistic estimates of the returns associated with each. The three estimates for each assets, along with its range, is given in the following Table. Which asset do you use? Why? (write for Most likely). Annual rate of Asset Asset Asset return X Z Pessimistic 12% 11% 10 % Most likely ? ? Optimistic 24% 25% 26%