A financial managermust decide what to do with the cash flows of her company. The anticipated rate of inflation exceeds the anticipated rate of return on investment. What might that manager reasonable do?
a. find an investment with higher rate of return, regardlessof risk.
b. Acceppt a decreased return in hopes that the actual rate of inflation is less than the projected rate.
c. Purchase necessary goods immediately in order to "earn" the rate of inflation on the value of the purchase.