which of the following is not a goal of investment to have a steady cash flow...

which of the following is not a goal of investment to have a steady cash flow during lifetime to allocate resources along with the consumption pattern to maximize future spending to minimize current spending

Solutions

Expert Solution

A Goal of investmetn include,

Having steady cash flows in future,

allocating resource according to consumption pattern,

minimizing current spending and

meeting all future goals.

It is never to maximize future spending.

So, option C is correct answer.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Which of the following is not a goal of investment?

Which of the following is not a goal of investment? a. to have steady cash flow during lifetime. b. to allocate resources along with the consumption pattern. c. to maximize future spending. d. to minimize current spending.

Which of the following statements concerning cash flow planning is correct? The goal is to maximize...

Which of the following statements concerning cash flow planning is correct? The goal is to maximize net cash flow. The goal should be to invest for the future, rather than maintaining current lifestyle. The goal should be to identify strengths and weaknesses in the client’s cash flows. The goal is to optimize net cash flow. Banks will typically grant home equity loans or lines of credit up to what loan-to-value percentage? 20 percent 40 percent 60 percent 80 percent PITI...

Which of the following statements concerning cash flow planning is correct? The goal is to maximize...

Which of the following statements concerning cash flow planning is correct? The goal is to maximize net cash flow. The goal should be to invest for the future, rather than maintaining current lifestyle. The goal should be to identify strengths and weaknesses in the client’s cash flows. The goal is to optimize net cash flow. 2. All the following are advantages of budgeting, EXCEPT: It helps reveal inefficient uses of resources. It fosters creativity and judicious risk-taking. It provides a...

Compute the cash flow, tax flow, and after tax flow for the following real estate investment...

Compute the cash flow, tax flow, and after tax flow for the following real estate investment property: -Gross rents are expected to be $36,000 per year -Expected vacancy allowance is 5% of gross rents -Property management fees are 8% of rents collected -Total estimated operating expenses per year $7,200 -Payment of mortgage per year: Interest 12,000 Principal 3,000 Total 15,000 -Depreciation allowance for the year is $14,350 -The owner's earned income is $100,000 and his marginal tax bracket is 30%...

Which of the following operating activities have a positive cash flow impact for a company? a....

Which of the following operating activities have a positive cash flow impact for a company? a. Increase in accounts receivable b. Decrease in accounts receivable c. Increase in inventories d. Decrease in accounts payable

Describe and explain three different cash flows: operating cash flow, investment cash flow, and cash flow...

Describe and explain three different cash flows: operating cash flow, investment cash flow, and cash flow from financing activities. What is the relative importance of each, and what factors impact your assessment? Does it vary by industry or business maturity? Imagine that you were structuring a business from the ground up--what percentage of cash flow would you target for each of these three types?

The Hudson Corporation makes an investment of $38,250 that provides the following cash flow: Year Cash...

The Hudson Corporation makes an investment of $38,250 that provides the following cash flow: Year Cash Flow 1 $19,000 2 19,000 3 13,000 Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. What is the net present value at a discount rate of 11 percent? (Do not round intermediate calculations and round your answer to 2 decimal places.) b. What is the internal rate of...

Listed below are yearly forecasts of “free cash flow” (operating cash flow plus investment-related cash flow)...

Listed below are yearly forecasts of “free cash flow” (operating cash flow plus investment-related cash flow) for Tomkat LLC. Year Cash Flow 2020 -$2.8 million. 2021 -$2.0 million. 2022 -$1.2 million. 2023 -$0.2 million. 2024 $0.9 million. 2025 $2.2 million. After year 2025, cash flows are anticipated to grow by 3% per year, in perpetuity. For simplicity, assume all that cash flows occur at the end of each year. Assume a discount rate of 8% per year. What is the...

Consider the following cash flow of an investment and compute the ROR using a trial and...

Consider the following cash flow of an investment and compute the ROR using a trial and error method. Year 0 1 2 3 4 5 6 7 8 9 10 Cash Flow -$5,000 $100 $100 $100 $100 $100 $100 $100 $100 $100 $7100 What will be your decision on this investment if the MARR is 5%?

Which of the following cash flows are not considered in the calculation of the terminal cash-flow...

Which of the following cash flows are not considered in the calculation of the terminal cash-flow for a capital investment proposal? Tax effect on Capital Loss/Gain Book value of the asset cost of issuing new bonds to finance the new project. net working capital. Salvage price of the asset And please explain as well

Subjects