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The Principle of the Time Value of Money Basically Says

Question 24

Multiple Choice

The principle of the time value of money basically says that ________.


A) because firms pay managers a great deal,managers need to use their time very effectively
B) money received today is more valuable than money received in the future because money in the future is more risky
C) money received today is more valuable than money received in the future because firms and individuals can invest money they have today and earn a return on that money
D) because of the principal-agent problem,investors cannot trust that money firms promise to pay in the future will ever arrive

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