The Concept of Time Value of Money Is Not Important

question 61

Multiple Choice

The concept of time value of money is not important to financial decision making because:

• A) it emphasizes earning a return on invested capital.
• B) it recognizes that earning a return makes $1 worth more today than $1 received in the future.
• C) it can be applied to future cash flows in order to compare different streams of income.
• D) it emphasizes the historic interest paid.

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Definitions:

Momentary Physical Interaction

A brief, physical contact or encounter between individuals or objects.

Egoistic

Pertaining to or thinking only of oneself, without regard for the feelings or desires of others; self-centered.

Friendship

A mutual bond between two or more individuals, characterized by affection, respect, loyalty, and healthy communication.

School Phobia

An intense fear or anxiety related to attending school, often leading to significant school avoidance.