The Time Value of Money Is Created by

question 5

Multiple Choice

The time value of money is created by

• A) the existence of profitable investment alternatives and interest rates.
• B) the fact that the passing of time increases the value of money.
• C) the elimination of the opportunity cost as a consideration.
• D) the fact that the value of saving money for tomorrow could be more or less than spending it today.

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, indicating the contribution of sales to fixed costs and profit.