Why is it usually necessary to use the time value of money when performing a cost benefit analysis?
A)For an investment project to be considered,costs must have a higher dollar value from benefits.
B)In most investment projects costs are incurred up front,but benefits are provided in the future.
C)For practical purposes,a dollar today may be considered to be equal to a dollar at some future time.
D)Although costs and benefits generally occur concurrently,the benefits will accrue value over time,due to interest.

Question

Quizplus · Accepted Answer

The time value of money is used because costs are often incurred upfront, while benefits are realized in the future, necessitating the comparison of present and future values.

Why Is It Usually Necessary to Use the Time Value