# Value of Money

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Discuss the time value of money and why this is important. Define the following terms in detail.

Â· Present Value

Â· Future Value

Â· Net Present Cost

Â· Annualized Cost

https://brainmass.com/business/the-time-value-of-money/value-of-money-158966

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Time value of money- This means that the value of the money today is more than the value of the same amount of money in the future. This is due to inflation. For example, 100 years ago five cents may have bought you breakfast at the local diner but today those same five cents will not even be enough for a tip. So it was smart for someone to use those five cents 100 years ...

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