Why Do Investors Prefer Receiving Cash Sooner Rather Than Later

question 9

Multiple Choice

Why do investors prefer receiving cash sooner rather than later, according to finance theory?

• A) Incremental profits are greater than accounting profits.
• B) Money received earlier can be reinvested and returns can be increased.
• C) Tax considerations are important when investing.
• D) Diversification leads to increased value.

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Agreements or contracts that are enforceable by law, requiring parties to fulfill their obligations.

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A neutral third party who attempts to assist parties in a negotiation to find a resolution or come to an agreement using rational arguments and persuasion.

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