A dollar in hand today is worth a dollar to be received in the future because if you had it now you could invest that dollar and interest. Of all the techniques used in finance, none is more important than the concept of time value of money (TVM), also called analysis. Time value analysis has many applications including retirement planning, stock and bond valuation, loan amortization, and capital budgeting analysis. Time value of money uses the concept of compound interest rather than simple interest.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A dollar in hand today is worth a dollar to be received in the future because if you had it now you could invest that dollar and interest. ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Why might you complete a 1040 instead of a 1040ez
Answers (1)
Texas Roadhouse opened a new restaurant in October. During its first three months of operation, the restaurant sold gift cards in various amounts totaling $3,500. The cards are redeemable for meals within one year of the purchase date.
Answers (1)
how did the apple2 device worked
Answers (1)
Your friend Ed has a money market mutual fund account, automatic deposit of his paycheck into an interest-bearing checking account at the company credit union, and a CD from the local branch of a bank that advertises "coast-to-coast" banking.
Answers (1)
Marginal analysis refers to: a process that measures specific individual marketing actions against one another that allows a firm to rank them according to their potential risks and benefits.
Answers (1)
New Questions in Business
Bruce is a salaried nonexempt employee who earns $42,500 annually, paid semimonthly, plus a 0.25% commission on all regional sales, paid monthly on the first pay date of the following month. During the month of May, the regional sales were $103,500.
Answers (1)
What could occur if grease trap is not maintained
Answers (1)
Waupaca Company establishes a $440 petty cash fund on September 9. On September 30, the fund shows $193 in cash along with receipts for the following expenditures: transportation-in, $46; postage expenses, $78; and miscellaneous expenses, $111.
Answers (1)
On September 1, the board of directors of Colorado Outfitters, Inc., declares a stock dividend on its 16,000, $7 par, common shares. The market price of the common stock is $36 on this date.
Answers (1)
Catherine and Jacob have a written contract to buy and sell "100 cases of widgets." The 100 cases is a typo, so after signing the contract they orally agree to modify the contract to "1,000 cases of widgets.
Answers (2)