The time value of money is:
A)Never relevant.
B)Relevant only to merchandising firms.
C)Relevant when deciding among alternatives with cash flows over one month to a year.
D)Relevant when deciding among alternatives with cash flows over six months to a year.
E)Relevant when deciding among alternatives with cash flows over two or more years.

Question

Quizplus · Accepted Answer

The time value of money is relevant when deciding among alternatives with cash flows over two or more years. This is because the value of money decreases over time due to inflation and other factors, so it is important to consider the potential future value of cash flows when making long-term investment or financing decisions.

The Time Value of Money Is