The time value of money is the opportunity cost of passing up the earning potential of a dollar today.

Name: The time value of money is the opportunity cost of passing up the earning potential of a dollar today.
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Question

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The time value of money refers to the fact that a dollar received today is worth more than a dollar received in the future due to its earning potential if invested. Therefore, passing up the opportunity to earn money today has an opportunity cost, which is the time value of money.

The Time Value of Money Is the Opportunity Cost of Passing