The concept of time value of money is important to financial decision making because
A) it emphasizes earning a return of interest on the money you invested.
B) it recognizes that $1 today has more value than $1 received a year from now.
C) it can be applied to future cash flows in order to compare different streams of income.
D) All of these are correct.

Question

Quizplus · Accepted Answer

The concept of time value of money is crucial in financial decision-making because it encompasses all these aspects: earning interest on investments, recognizing the greater value of current dollars over future dollars, and allowing for the comparison of different income streams by applying it to future cash flows.

The Concept of Time Value of Money Is Important to Financial