Business in Action
9th Edition
ISBN: 9780135198100
Author: BOVEE
Publisher: PEARSON CO
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Question
Chapter D, Problem 1QR
Summary Introduction
To discuss: The meaning for time value of money.
Expert Solution & Answer
Explanation of Solution
An idea that states the amount available at the present time is very valuable than the same amount in the future because of its potential earnings capacity is the time value of money. The time value of money is a significant concept to the investors as a dollar on hand at present is very valuable than the dollar to be obtained in future.
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