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Jeremy FIN534 Week 3 Discussion

Examine the concept of the time value of money in relation to corporate managers. Propose two methods in which time value of money can help corporate managers in general.

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Time value of money suggests that the money received at different point of time has different value. It is the idea that a particular sum of money in your hand today is worth more than the same sum at some future date. It is a concept that a dollar that you have today is worth more than the promise or expectation that you will receive from a dollar in the future. Time value of money is a concept to understand the value of cash flows occurred at different point of time. Money that we hold today is worth more because it can be invested and interest can be earned. Managers use time value to calculate the present value of both a sum of money and a stream of

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