Which of the following strategies is based on the present value of money?
A) timing
B) tax avoidance
C) income shifting
D) conversion
E) None of these

Question

Quizplus · Accepted Answer

Timing of cash flows is based on the present value of money. It involves making decisions about when to receive or pay money to minimize the impact of inflation and maximize the value of money over time. Tax avoidance, income shifting, and conversion, on the other hand, are strategies aimed at minimizing tax liabilities and maximizing after-tax income. None of these strategies are explicitly based on the present value of money.

Which of the Following Strategies Is Based on the Present