What Is Another Term for Time Value of Money

question 12

Multiple Choice

What is another term for time value of money?

• A) Net present value
• B) Internal rate of return
• C) Opportunity cost of funds
• D) Yield to maturity

---

Definitions:

Opportunity Costs

The lost potential gain from other options when one option is chosen.

Nonmonetary Costs

Costs not easily quantified in monetary terms, including time, effort, and emotional investment made by consumers in association with a purchase.

Marketers

Professionals or organizations that engage in activities designed to identify, anticipate, and satisfy customer needs profitably.

Transactional Cost

The expenses incurred during a trade or deal, including costs of information, negotiation, and enforcement of contracts.