Time Value of Money
Not what you're looking for?
What is the "time value of money" and how does it affect a financial manager's decision regarding cash flows?
What is an annuity? Why might annuities be useful to a corporation?
In computing the cost of capital, do we use the historical costs of existing debt and equity or the current costs as determined in the market? Why?
How is valuation of any financial asset related to future cash flows? Give at least 1 example.
Purchase this Solution
Solution Summary
Explains the time value of money concept and also describes the time value of annuities, cost of capital and valuation of an asset.
Solution Preview
"Time is money" is an old adage that carries a significant amount of weight. When we equate time with money we do so because we know that without time, money cannot grow, but we also understand that money cannot be made if time is idle or wasted, and as such money can also decrease in value over time. Thus, it's important for both investors and financial institutions to be cautious and to scrutinize the essence of financial operations over the duration of their livelihood (or demise).
Time Value of Money (TVM) according to Business Dictionary.com is "the price put on the time an investor or lender has to wait until the investment or loan is fully recouped. Time Value of Money (TVM) is based on the ...
Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Writing Business Plans
This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.