TIME VALUE OF MONEY
This query is : Resolved
Vishnu Agarwal
(Querist)
19 August 2008
WHAT IS THE MEANING OF TIME VALUE OF MONEY?
WHAT IS THE MEANING OF TIME VALUE OF MONEY?
Vishnu Agarwal
(Querist)
19 August 2008
GIVE ANY EXAMPLE OF IT.
Vishnu Agarwal
(Querist)
19 August 2008
REPLY AS EARLY AS POSSIBLE
Subash Gaijes
(Expert)
19 August 2008
Mr. Vishnuagarwal,
Go through this small example.
Your dad, in his childhood could have watched a movie for 50 paise or a rupee. But now u can get only a candy for 50 paise. This is time value of money. As years go, the value of money will decrease, in proportion to the inflation rate. If u discount the cashflows with the discounting factor, ie inflation rate, u will get present value of money.
Go through this small example.
Your dad, in his childhood could have watched a movie for 50 paise or a rupee. But now u can get only a candy for 50 paise. This is time value of money. As years go, the value of money will decrease, in proportion to the inflation rate. If u discount the cashflows with the discounting factor, ie inflation rate, u will get present value of money.
Vishnu Agarwal
(Querist)
19 August 2008
thanx
thanx
Vishnu Agarwal
(Querist)
19 August 2008
thanx for replying
thanx for replying
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