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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1000 |
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In 5 years that money could be worthless or not returned to the investor. Also, because of the effects of inflation, money in hand today will purchase more goods or services than money in the future. There is a residual time value of money, beyond compensation for default and inflation risk that represents simply the preference for consumption now versus later...
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There is a residual time value of money, beyond compensation for default and inflation risk that represents simply the preference for consumption now versus later.
As mentioned earlier, the Time Value of Money concept is broadly accepted and used by both the corporation and private consumer alike.
Commercial banks and financial providers use TVM applications to determine and manage their cash flow and credit management...
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