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:

Hyperglycemia

A medical condition characterized by high blood glucose (sugar) levels, often associated with diabetes.

Insulin

An agent released by the pancreas that manages the concentration of sugar in the blood by supporting the entry of glucose into various tissues.

Thyroid Gland

Endocrine gland found in the neck; regulates metabolism.

Thyroxin

A hormone produced by the thyroid gland that regulates metabolism, energy generation, and overall growth and development.