The Principle of the Time Value of Money Basically Says

question 95

Multiple Choice

The principle of the time value of money basically says that ________.

• A)because firms pay managers a great deal,managers need to use their time very effectively
• B)money received today is more valuable than money received in the future because money in the future is more risky
• C)money received today is more valuable than money received in the future because firms and individuals can invest money they have today and earn a return on that money
• D)because of the principal-agent problem,investors cannot trust that money firms promise to pay in the future will ever arrive

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Definitions:

Repudiate

To refuse to accept or be associated with, particularly in the context of rejecting the validity of a contract.

Thirty Working Days

A time period consisting of six weeks of business days, excluding weekends and public holidays.

Breach of Contract

The failure to perform any term of a contract, agreement, or obligation without a legitimate legal excuse.

Unlicensed Professional

A professional practicing without the required legal authorization or license.