Cash flow decisions that ignore the time value of money will probably not be as accurate as those decisions that do rely on the time value of money.

Question

Quizplus · Accepted Answer

The time value of money recognizes that money received or paid at different times has different values due to the opportunity cost of having that money available to invest or earn interest. Ignoring this concept can lead to inaccurate financial decisions.

Cash Flow Decisions That Ignore the Time Value of Money