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First, if I were to offer you $5,000 today or $10,000 10 years from now, which would you take based on the time value of money? Or would you need some additional information in order to answer that question? If so, what information would you like to have?

Second, time value of money is based on the ability to grow money - to create wealth through investing. If I made you the above offer, in addition to considering the time value of money (growing your moeny by investing it), what other factors might influence your decision to take cash now or to wait to receive cash in the future?

Financial Management, Finance

  • Category:- Financial Management
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