The concept of time value of money is important to financial decision making because
A) it emphasizes earning a return on invested capital.
B) it recognizes that earning a return makes $1 worth more today than $1 received in the future.
C) it can be applied to future cash flows in order to compare different streams of income.
D) all of these

Question

Quizplus · Accepted Answer

The concept of time value of money recognizes that earning a return on invested capital makes $1 worth more today than $1 received in the future. It emphasizes the importance of earning a return and can be applied to different streams of income to compare their values over time. Therefore, all of these options are correct.

The Concept of Time Value of Money Is Important to Financial