Why Is It Usually Necessary to Use the Time Value

question 9

Multiple Choice

Why is it usually necessary to use the time value of money when performing a cost-benefit analysis?

• A) For an investment project to be considered, costs must have a higher dollar value than benefits.
• B) In most investment projects, costs are incurred up front, but benefits are received in the future.
• C) For practical purposes, a dollar today may be considered to be equal to a dollar at some future time.
• D) Although costs and benefits generally occur concurrently, the benefits will accrue value over time, due to interest.

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Definitions:

Company's Success

The achievement of key business objectives, often measured by financial performance, market share, or the fulfillment of the organization's mission and vision.

Self-reinforcement

The process through which individuals reward themselves for achieving personal goals or performing well.

Personal Goal Setting

The process of identifying something that one aims to achieve personally, and planning the steps necessary to achieve it.

Constructive Thought Patterns

Positive and productive ways of thinking that contribute to individual well-being and effective problem-solving.