The time value of money is the economic principal that a dollar received today has greater value than a dollar

The time value of money is the economic principal that a dollar received today has greater value than a dollar

The time value of money is the economic principal that a dollar received today has greater value than a dollar

received in the future. In a professional setting, understanding the time value of money is necessary for financial decisions such as business loans, investment analysis, capital budgeting, and many more crucial decisions needed to run a successful company. All students studying finance should understand the importance of different concepts of time value of money and be apply them to a real situation. This discussion will help us to describe and explain different concepts of time value of money. This discussion will answer the following: