The time estimation of cash (TVM) is the idea that cash accessible right now is worth more than a similar measure of cash later on because of its potential winning limit. This center guideline of back holds that, if cash can gain premium, any measure of cash is worth progressively the prior it is gotten. TVM guideline says that the estimation of given whole of cash to be gotten on a specific date is more than same total of cash to be gotten on a later date. TVM is additionally alluded to as present marked down esteem. What is meant by the term time value of money?

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Chapter 12, Problem 2Q

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The time estimation of cash (TVM) is the idea that cash accessible right now is worth more than a similar measure of cash later on because of its potential winning limit. This center guideline of back holds that, if cash can gain premium, any measure of cash is worth progressively the prior it is gotten. TVM guideline says that the estimation of given whole of cash to be gotten on a specific date is more than same total of cash to be gotten on a later date. TVM is additionally alluded to as present marked down esteem.

What is meant by the term time value of money?

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