What is time value of money?
According to the Corporate Finance Institute (2019), the time value of money is an idea that
keeps up with that cash in the present is worth more than similar cash to be gotten in the future.
The future value of money clarifies why retail financial investors lean toward current money to
future money. The current liquidity inclination is ascribed to the accessible venture opportunity,
inflation, and the blend of current necessities. The time worth of cash is at times alluded to as the
net present worth (NPV) of cash
Discuss how the expression “a bird in the hand is worth two in the bush” relate to the
concept of the time value of money?
In keeping with the economy, this term reveals that the money you have today is invaluable
compared to the money you want to keep in the future. The value of money decreases over time,
except when a currency deflates, but this is unusual. (Jurgens, 2010). It is better to have and use
the money available now because you can make it in the future and it can buy things of value
that cannot buy in the future.
Reference:
Corporate Finance Institute (2019). Time Value of Money. Retrieved July 8, 2019,
from https://corporatefinanceinstitute.com/resources/knowledge/valuation/time-value-of-money/
Jurgens, T. (Oct 26, 2010). Talking to Your Bo$$- Time Value of Money. Retrieved
from https://www.aiche.org/chenected/2010/10/talking-your-bo-time-value-money
According to the Corporate Finance Institute (2019), the time value of money is an idea that
keeps up with that cash in the present is worth more than similar cash to be gotten in the future.
The future value of money clarifies why retail financial investors lean toward current money to
future money. The current liquidity inclination is ascribed to the accessible venture opportunity,
inflation, and the blend of current necessities. The time worth of cash is at times alluded to as the
net present worth (NPV) of cash
Discuss how the expression “a bird in the hand is worth two in the bush” relate to the
concept of the time value of money?
In keeping with the economy, this term reveals that the money you have today is invaluable
compared to the money you want to keep in the future. The value of money decreases over time,
except when a currency deflates, but this is unusual. (Jurgens, 2010). It is better to have and use
the money available now because you can make it in the future and it can buy things of value
that cannot buy in the future.
Reference:
Corporate Finance Institute (2019). Time Value of Money. Retrieved July 8, 2019,
from https://corporatefinanceinstitute.com/resources/knowledge/valuation/time-value-of-money/
Jurgens, T. (Oct 26, 2010). Talking to Your Bo$$- Time Value of Money. Retrieved
from https://www.aiche.org/chenected/2010/10/talking-your-bo-time-value-money
