Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter17: Financial Markets
Section: Chapter Questions
Problem 5SCQ: Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is...
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Question
![As Financial Manager what would be your decision on assets and investment matters to
meet profit maximization? Choose the best answer.
1.
A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each
asset costs P35,000 and is expected to provide earnings over three years as described
below.
Based on the profit- maximization goal, the financial manager would choose
ASSET
YEAR
YEAR
1
2
1
21,000
15,000
6,000
2
9,000
15,000
21,000
3
3,000
20,000
19,000
4
6,000
12,000
12,000
А.
Asset 1
В.
Asset 2
C.
Asset 3
D. Asset 4
Why the financial manager should maximize
their wealth?
How would they prove that there was a
transaction so that the demander will be able
to repay the supplier on time and at the right
amount?
Do you think using those financial
institutions would help the company to grow](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F53cb3cca-aa8c-4eb1-8960-34fd08e7cc98%2Fe4c3ce88-b407-4a0b-a4d1-17fddc3a9cb6%2Fzsj6v0p_processed.jpeg&w=3840&q=75)
Transcribed Image Text:As Financial Manager what would be your decision on assets and investment matters to
meet profit maximization? Choose the best answer.
1.
A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each
asset costs P35,000 and is expected to provide earnings over three years as described
below.
Based on the profit- maximization goal, the financial manager would choose
ASSET
YEAR
YEAR
1
2
1
21,000
15,000
6,000
2
9,000
15,000
21,000
3
3,000
20,000
19,000
4
6,000
12,000
12,000
А.
Asset 1
В.
Asset 2
C.
Asset 3
D. Asset 4
Why the financial manager should maximize
their wealth?
How would they prove that there was a
transaction so that the demander will be able
to repay the supplier on time and at the right
amount?
Do you think using those financial
institutions would help the company to grow
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