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Time Value of Money - Finance

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During periods of low interest rates, why is considering the time value of money (i.e., present value, future value, etc.) less relevant?

How do you think that managing working capital relates to the time value of money? Try to give some examples.

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Time Value of Money is explained in a structured manner in this response. The answer includes references used.

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During periods of low interest, considering the time value of money is less relevant because making time value of money calculations requires the person to assume an interest rate. If the current interest rate is low then the time value of money calculated on the basis of low interest rate will also be low. This makes the time value of money calculation less relevant because there is a possibility ...

Solution provided by:
Hatim Baxamusa, MBA
Education
  • BSc , University of Calcutta
  • MBA, Eastern Institute for Integrated Learning in Management
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