Why is the concept of the time value of money so important to financial managers?

Question

Quizplus · Accepted Answer

The Answer is The concept of the time value of money is important to financial managers because it is this concept that drives managerial decision making.Management decisions are driven by cash flow and these cash flows must be adjusted for the time value of money.This would be most closely reflected in the project evaluation.In addition,the value of a firm's common stock is driven by discounted cash flows.Management pays close attention as to how their decisions affect the value of ownership in their firm.

Why Is the Concept of the Time Value of Money