According to the concept of present value, a $50 barrel of oil today is worth

Question

Quizplus · Accepted Answer

The concept of present value states that a sum of money today is worth more than the same sum in the future due to its potential earning capacity. This is the core principle of time value of money. Therefore, a $50 barrel of oil today is worth more than a $50 barrel in 2 years because the money could be invested and earn a return over those two years.

According to the Concept of Present Value, a $50 Barrel