Grisham is the financial manager of Plink Inc., an electronics company. He invests a major portion of the company's profit in his business. He believes that money has the potential to grow in value over a certain period, which is why he prefers to receive and invest an amount of money today rather than in the future. In this scenario, Grisham is most likely to be influenced by _____ while utilizing the finances of the company.
A) revolving credit agreement
B) net present value
C) retained earnings
D) time value of money

Question

Quizplus · Accepted Answer

Grisham is influenced by the time value of money, which is the concept that money available today is worth more than the same amount in the future due to its potential earning capacity.

Grisham Is the Financial Manager of Plink Inc