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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.
Assets:
Asset 1: Year 1 = $21,000, Year 2 = $15,000, Year 3 = $6,000
Asset 2: Year 1 = $9,000, Year 2 = $15,000, Year 3 = $21,000
Asset 3: Year 1 = $3,000, Year 2 = $20,000, Year 3 = $19,000
Asset 4: Year 1 = $6,000, Year 2 = $12,000, Year 3 = $12,000
Based on the wealth maximization goal, the financial manager would choose
A. Asset 1
B. Asset 2
C. Asset 3
D. Asset 4
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