The Concept of Time Value of Money Is Important to Financial

question 108

Multiple Choice

The concept of time value of money is important to financial decision making because

• A) it emphasizes earning a return of interest on the money you invested.
• B) it recognizes that $1 today has more value than $1 received a year from now.
• C) it can be applied to future cash flows in order to compare different streams of income.
• D) all of these.

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The ability of an individual or entity to enter into legally binding contracts and be sued or sue others.

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The completion, termination, or fulfillment of an obligation, debt, or contract.

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Laws and regulations that establish the requirements and standards for obtaining and maintaining a license to practice certain professions.

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