The Main Concept of Time Value of Money Is

question 68

Multiple Choice

The main concept of time value of money is:

• A) that cash flows received in the distant future are not as valuable as cash flows received in the near future.
• B) the recognition of all relevant costs in absolute dollars.
• C) that cash flows received in different years should be treated as equal.
• D) that cash payments made in the future have the same value today.

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Definitions:

Base Metal Mining

The extraction of non-precious metals such as copper, zinc, nickel, and lead from the earth.

Decline

A decrease in the importance, quantity, or intensity of something.

Economically Equivalent

Economically equivalent means having the same financial value or cost, despite possibly differing in form or method.

Missing Value

An absent or unrecorded piece of data in a dataset or equation.