Ask Question
BusinessBusiness
6 November, 23:41

The time value of money suggests that $1 in one year from now is worth less than $1 today. True / False.

+1
Answers (1)
  1. 6 November, 23:49
    0
    False, we conclude that $1 in one year from now is worth more than that of today.

    Explanation:

    The time value of money (TVM) is concept that suggests money available at present time is worth more than identical sum in future due to potential earning capacity.

    This core principle in finance holds that the provided money can earn interest, and any amount of money is worth more the sooner it is received.

    Also future money is not affected by inflation, only present money is.

    Hence we conclude that $1 in one year from now is worth more than that of today.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The time value of money suggests that $1 in one year from now is worth less than $1 today. True / False. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Is typically not referred to as a buffer type in critical chain project management?
Answers (1)
Fournotts Corp. manufactures syringes that filter water, but the consumers in the market are not aware of the existence of this product. In this case, which of the following strategies will increase the sales of the syringes? a.
Answers (1)
The term "turnout" describes the number of people who
Answers (1)
Suppose you are the only owner of a chain of coffee shops near universities. Your current cafes are doing well, but you are interested in starting a fine-dining restaurant You decide to use the cash generated from your existing business to enter
Answers (1)
Akika Corporation started as a small firm and has grown substantially in the past decade. Its interests span from electronics to real estate and aviation.
Answers (1)
New Questions in Business
One widespread trend under way in business today that will affect the goals of the organization you work for is: Select one: a. social intelligence b. new media adaptations c. an increased focus on ethical and socially responsible behavior d.
Answers (1)
A high-profile consulting company chooses its new entry-level employees from a pool of recent college graduates using a five-step interview process.
Answers (1)
Suppose the nominal annual interest rate on a two year loan is 8 percent and lenders expect inflation to be 5 percent in each of the two years. the annual real rate of interest is
Answers (1)
The producer of a downloadable antivirus software program spends exactly $2,650,000 producing the first copy and incurring various costs required to make the software "user-friendly.
Answers (1)
Which of the following items could be painted in a dark color to be on trend in 2020?
Answers (2)
Home » Business » The time value of money suggests that $1 in one year from now is worth less than $1 today. True / False.
Sign Up Forgot Password?