A financial manager is considering two projects, A and B; both are expected to add $5 million to profits
Project A is expected to add $5 million to profits this year, while Project B is expected to add $1 million to profits each year over the next five years. Which of the following statements is MOST correct?
A) The manager should select Project A because it maximizes profits.
B) The manager should select the project that maximizes long-term profits, not just one year of profits.
C) The manager should select Project A, of course.
D) The manager should select the project that causes shareholder wealth to increase the most, which could be A or B.
D
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RBC Royal Bank wanted to evaluate the financial value of its substantial personal customer base to determine which type of customers were the most valuable to the bank
To do this, the bank looked at revenues and expenses from each of its financial products, including loans and credit card usage. To identify and then analyze this information, the bank utilized the MIS analysis technique called ________. A) data warehousing B) marketing research C) probability sampling D) data mining E) market basket analyzing
(a) Explain the differences between accrued revenues and unearned revenues. (b) Explain the differences between accrued expenses and prepaid expenses. (c) Give an example of each
Bob owns and operates a wholesale hardware business that supplies small hardware parts to various manufacturers in the area. He takes title to the hardware and assumes all risks associated with ownership. Bob is a
A. rack jobber. B. merchant wholesaler. C. wholesaler agent. D. drop shipper. E. sales branch.
Due to unstable world markets, most large U.S. corporations do almost all of their business in the
United States. Indicate whether the statement is true or false