Time value of money in economic decisions

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Please explain why the time value of money is important in an economic decision and how NPV and payback period are used in business to incorporate the time value of money into operational decision. Explain the three basic concepts that are used for estimating the cost of ownership for a single option or in comparing multiple options, as well as the relationship between these cost estimation concepts and a company's financial statements.

Reference no: EM1327366

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