Consider cash flows for projects X and Y such as: A rational person would prefer receiving cash flows sooner because [blank].
A)the money can be reinvested
B)the money is nice to have around
C)the investor may be tired of a particular investment
D)the investor is indifferent to either proposal

Question

Consider cash flows for projects X and Y such as:  A rational person would prefer receiving cash flows sooner because [blank].
A)the money can be reinvested 
B)the money is nice to have around 
C)the investor may be tired of a particular investment 
D)the investor is indifferent to either proposal

Quizplus · Accepted Answer

Receiving cash flows sooner allows for the money to be reinvested, which can potentially result in higher returns over time. This is known as the time value of money principle, which states that money today is worth more than the same amount of money in the future due to its potential earning capacity. Therefore, a rational person would prefer earlier cash flows to take advantage of this principle.

Consider Cash Flows for Projects X and Y Such As