According to the time value of money, an amount of $1,000 received three years from today would have the same present value as a cash flow of $1,000 received two years from today.

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According to the time value of money, receiving $1,000 earlier is better than receiving it later because you can invest the money and earn interest. Therefore, the $1,000 received two years from today would have a higher present value than the $1,000 received three years from today.

According to the Time Value of Money, an Amount of $1,000