The main idea behind the time value of money is that:
A. cash payments made in the future have the same value as payments made today.
B. cash flows received in different years are treated as equal in value.
C. cash flows received in the distant future are less valuable than cash flows received in the near-term future.
D. timing considerations of cash flows have little value in decision making.
E. cash received in year 3, say, $80,000, has the same value as $40,000 received in year 3 plus $40,000 received in year 4.
Answer: C
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