A Financial Manager Must Choose Between Four Alternative Investments, 1

question 68

Multiple Choice

A financial manager must choose between four alternative investments, 1, 2, 3, and 4. Each assetcosts $35,000 and is expected to provide earnings over a three-year period as described below. $\begin{array}{rrrr}\text { Asset }&\text { Year } 1&\text { Year } 2&\text { Year } 3\\1 & \$ 21,000 & \$ 15,000 & \$ 6,000 \\2 & 9,000 & 15,000 & 21,000 \\3 & 3,000 & 20,000 & 19,000 \\4 & 6,000 & 12,000 & 12,000\end{array}$ Based on the profit maximization goal, the financial manager would choose

• A) Asset 1.
• B) Asset 2.
• C) Asset 3.
• D) Asset 4.

---

Definitions:

Standard Reference

A universally accepted guideline or benchmark used for comparison and quality assurance in various fields.

Paralegals

Trained legal assistants who support lawyers in various tasks, including research and document preparation.

The Bluebook

A widely used guide for citation of legal documents and sources within academic and professional legal writing and publishing.

Writing Resource

Tools or materials that provide guidance, tips, and strategies to improve writing skills, often utilized by students, professionals, and writers.