Financial managers use the time value of money
A)to make business decisions.
B)to compare cash flows of different projects.
C)to determine the price of current assets.
D)both A and B.
E)both A and C.

Question

Quizplus · Accepted Answer

Financial managers use the time value of money to make business decisions like determining which project to invest in by comparing cash flows of different projects. They also use it to calculate the present and future value of assets and liabilities, which can help them determine the price of current assets. Therefore, both options A and B are correct. Option C is incorrect because the time value of money is not used solely to determine the price of current assets.

Financial Managers Use the Time Value of Money