Which Statement Characterizes the Time Value of Money Concept

question 119

Multiple Choice

Which statement characterizes the time value of money concept?

• A) The future value of a present dollar is greater than one dollar.
• B) The present value of a future dollar is greater than one dollar.
• C) The timing of cash flows is not relevant to decision making.
• D) None of these answers are correct

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Definitions:

Lower Cost

Reducing expenses or the amount of resources required to produce goods or services, often to maintain competitiveness or increase profitability.

Interrole Conflict

A psychological conflict arising from opposing demands related to different roles played by an individual.

Values

Core beliefs or principles that guide an individual's behavior and decision-making process.

Attitude

A psychological tendency expressed by evaluating a particular entity with some degree of favor or disfavor.