O Why the financial manager should maximize their wealth?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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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
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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