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A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs $35,000 and is expected to provide earnings over
A financial manager must choose between four alternative Assets: 1, 2, 3, and 4. Each asset costs $35,000 and is expected to provide earnings over a three-year period as described below. Asset Year 1 Year 2 Year 3 Asset 1 $21,000 $15,000 $6,000 Asset 2 9,000 15,000 21,000 Asset 3 3,000 20,000 19,000 Asset 4 6,000 12,000 12,000 Based on the wealth maximization goal, the financial manager would choose Select one: O a. Asset 3 O b. Asset 2 O c. Asset 4 O d. Asset 1
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