The Main Idea Behind the Time Value of Money Is

question 15

Multiple Choice

The main idea behind the time value of money is that:

• A) cash flows received in the distant future are less valuable than cash flows received in the near-term future.
• B) cash received in year 3, say, $80,000, has the same value as $40,000 received in year 3 plus $40,000 received in year 4.
• C) cash flows received in different years are treated as equal in value.
• D) cash payments made in the future have the same value as payments made today.
• E) timing considerations of cash flows have little value in decision making.

---

Definitions:

Purchasing Cards

Specialized payment cards issued by organizations to their employees to make purchases on behalf of the organization, streamlining the procurement process.

Online Payments

Transactions that enable individuals to pay for products or services over the internet using digital financial instruments, such as credit cards, electronic wallets, or bank transfers.

Electronic Storefront

The website of a single company, with its own Internet address, at which orders can be placed.

Single Store

A retail business that operates from one physical location, offering products or services to customers from that sole position.