Benefits today cannot be directly compared with costs in the future because:
A)money today is worth more than money in the future.
B)people do not have perfect willpower and will waste money today.
C)investments aren't always profitable.
D)more information is needed to make investment decisions than is typically available.

Question

Quizplus · Accepted Answer

The concept of the time value of money explains why money today is worth more than the same amount in the future. This principle underlies the idea that a dollar today can be invested to earn interest, leading to a greater amount in the future. Therefore, when comparing costs and benefits over time, it's crucial to account for the difference in value due to the potential for investment and interest accrual.

Benefits Today Cannot Be Directly Compared with Costs in the Future