What is time value of money and its relevance in financial decision making
What is time value of money and discuss its relevance in financial decision making
getgoing (--) (20 Points)
05 May 2023
Ayush
(Executive )
(6760 Points)
Replied 05 May 2023
The time value of money is a concept in finance that recognizes the principle that money has a time value, meaning that the value of money today is different from the value of money in the future. This is because money has the potential to earn interest or other returns when invested or used to generate income over time.
The time value of money is relevant in financial decision-making because it helps to quantify the value of money over time and allows individuals and businesses to compare the value of money at different points in time. By understanding the time value of money, individuals and businesses can make informed decisions about investments, financing, and other financial activities.
The relevance of the time value of money in financial decision making is significant, as it affects the value of financial assets and liabilities, and helps investors and businesses make informed decisions. The following are some ways in which the time value of money is relevant in financial decision making:
sabyasachi mukherjee
(27574 Points)
Replied 05 May 2023