The concept of time value of money is important to financial decision making because
A) it emphasizes earning a return on invested capital.
B) it recognizes that earning a return makes $1 worth more today than $1 received in the future.
C) it can be applied to future cash flows in order to compare different streams of income.
D) all of the other answers are correct

Question

Quizplus · Accepted Answer

All of the options listed are correct. Time value of money is important because it emphasizes the need to earn a return on invested capital, recognizes that a dollar received in the future is worth less than a dollar today, and allows for the comparison of different streams of income.

The Concept of Time Value of Money Is Important to Financial