A basic present value concept is that cash received in the future is worth more value than the same amount of cash received today.

Question

Quizplus · Accepted Answer

The basic present value concept is actually the opposite - cash received today is worth more than the same amount of cash received in the future. This is due to the time value of money and the potential for the money to earn interest or a return if invested.

A Basic Present Value Concept Is That Cash Received in the Future