Question

The present value approach takes each short, intermediate, and long-term goal, determines each indi- vidual present value, then sums these present values together and then reduces them by current resources (investment assets and cash and cash equivalents) and then treats the net PV as an obligation to be retired over the remaining life expectancy at a discount rate equal to the expected portfolo rate of return True False QUESTION 25 The present value approach is helpful in discussions with clients as it provides an annual savings requirement that can be compared to current savings and takes into consideration all future cash flow goals O True False

Answer 1

Explanation:Presentvalue approach provides the annual savings and also determines the present value of all future economic benefits (cash flows including dividends) are discounted with required return.

Q:24

True

Q:25

True