The time value of money and present value are important business concepts. Required: Briefly explain these concepts to someone with a limited business background.
What will be an ideal response?
The time value of money recognizes that a dollar received today is worth more than a dollar received in the future. Such monies can be invested to earn additional returns for the individual and/or firm. Present value, an approach that is based on time values, weights dollars in earlier years of an investment more heavily than dollars of later years. The result is present value, namely, the amount that a company (or individual) should be willing to pay today to secure a future cash flow at a given rate of return.
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During a period of increasing cost prices, which inventory costing method will yield the lowest cost of goods sold?
a. Any method in which the company uses a periodic inventory system b. Weighted Average Cost c. LIFO d. FIFO
Cost of goods manufactured decreases the Work in Process Inventory account
Indicate whether the statement is true or false
Individual difference variables are descriptions of how individual consumers differ according to specific traits or patterns of behavior.
Indicate whether the statement is true or false
Groups of physicians that contract with an employer to provide medical resources on a more cost-efficient basis in exchange for a greater share of patients are known as
A. preferred provider organizations (PPOs). B. major medical plans. C. health maintenance organizations (HMOs). D. integrated medical practices.