Purchase Solution

Time Value of Money Concept: Individuals & Businesses

Not what you're looking for?

Ask Custom Question

This posting addresses the following questions:
What does the concept "time value of money" mean? Why is the concept important? What are some practical applications of this concept for businesses? For individuals? What assumptions have to be accepted when discussing the "time value of money"?

Purchase this Solution

Solution Summary

This solution is comprised of a detailed explanation of time value of money as it pertains to both individuals and businesses. In 400 words, the concept of TVM is explained, as well as its applications for businesses, individuals, and the assumptions that must be considered when discussing TVM.

Solution Preview

What does the concept mean "time value of money"? Why is the concept important? What are some practical applications of this concept for businesses? For individuals? What assumptions have to be accepted when discussing the "time value of money"?

Money can be invested to produce greater earnings over time, but $100 in the future does not produce as much earnings as $100 today. This connection between time and interest is known as the concept of the "time value of money".
Time value of money (TVM) is an important idea that helps both businesses and individuals in making investment decisions. Time value of money forces one ...

Purchase this Solution


Free BrainMass Quizzes
Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

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.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Operations Management

This quiz tests a student's knowledge about Operations Management