Let's walk backwards from the $10,000 offered in Option B.

Remember, the $10,000 to

be received in three years is really the same as the future value of an investment. If today
we were at the two-year mark, we would discount the payment back one year. At the two-
year mark, the present value of the $10,000 to be received in one year is represented as
the following: Asset turnover, or sales-to-asset ratio, shows how efficiently your company is
converting its assets into sales. Find your company's sales on the income statement and divide it by
total assets from the balance sheet. The higher the ratio the better; a reading of one or higher
indicates the company is generating more than $1 in sales for each $1 in assets. New start-ups may
take time to generate significant sales, therefore track the quarterly or yearly trend of the figure. A
rising asset turnover ratio over time shows assets are being utilized more effectively. Asset turnover,
or sales-to-asset ratio, shows how efficiently your company is converting its assets into sales. Find
your company's sales on the income statement and divide it by total assets from the balance sheet.
The higher the ratio the better; a reading of one or higher indicates the company is generating more
than $1 in sales for each $1 in assets. New start-ups may take time to generate significant sales,
therefore track the quarterly or yearly trend of the figure. A rising asset turnover ratio over time
shows assets are being utilized more effectively. Asset turnover, or sales-to-asset ratio, shows how
efficiently your company is converting its assets into sales. Find your company's sales on the income
statement and divide it by total assets from the balance sheet. The higher the ratio the better; a
reading of one or higher indicates the company is generating more than $1 in sales for each $1 in
assets. New start-ups may take time to generate significant sales, therefore track the quarterly or
yearly trend of the figure. A rising asset turnover ratio over time shows assets are being utilized more
effectively. Asset turnover, or sales-to-asset ratio, shows how efficiently your company is converting
its assets into sales. Find your company's sales on the income statement and divide it by total assets
from the balance sheet. The higher the ratio the better; a reading of one or higher indicates the
company is generating more than $1 in sales for each $1 in assets. New start-ups may take time to
generate significant sales, therefore track the quarterly or yearly trend of the figure. A rising asset
turnover ratio over time shows assets are being utilized more effectively.