When looking at financial models of project selection, factors such as inflation and risk impact the ________ value of money.
A) current
B) real
C) project
D) time

Question

Quizplus · Accepted Answer

Inflation and risk affect the time value of money, which is a concept that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This principle underlies the basis of financial models of project selection, taking into account the future cash flows discounted back to their present value.

When Looking at Financial Models of Project Selection, Factors Such