Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
11th Edition
ISBN: 9781259870576
Author: Ross
Publisher: MCG
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Chapter 5.1, Problem 5.1ACQ
Summary Introduction

To discuss: The meaning of future value of an investment

Introduction:

The time value of money implies that the cash in hand at present has a higher value than the cash receipt promised in the future. In other words, time value of money states that the money at present is worth more than the money at a future date. The interest or return earned on the investment will help in offsetting the value lost due to time value of money.

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