Which of the Following Statements Is Correct

question 33

Multiple Choice

Which of the following statements is correct?

• A) Regardless of our preferences for cash today versus cash in the future, we should always maximize benefits first. We can then borrow or lend to shift cash flows through time and find our most preferred pattern of cash flows.
• B) Regardless of our preferences for cash today versus cash in the future, we should always maximize present value first. We can then borrow or lend to shift cash flows through time and find our most preferred pattern of cash flows.
• C) Regardless of our preferences for cash today versus cash in the future, we should always maximize net present value first. We can then borrow or lend to shift cash flows through time and find our most preferred pattern of cash flows.
• D) Regardless of our preferences for cash today versus cash in the future, we should always minimize the cost first. We can then borrow or lend to shift cash flows through time and find our most preferred pattern of cash flows.

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Definitions:

Generativity

A concern for establishing and guiding the next generation, often expressed through parenting, teaching, and mentoring, and considered a stage of psychosocial development.

Havighurst's Vision

A theory proposing that successful aging involves maintaining interests, activities, and adapting to social and biological changes.

Normalcy

The condition of being normal; the state of being usual, typical, or expected.

Developmental Task

A learning task that is typical at a certain stage in life, which an individual must successfully complete for optimal development.