Time value of money, Financial Management

Can you help me out on the Time value of money?????

I need urgent help on this topic...

Posted Date: 2/13/2013 4:20:54 AM | Location : United States





Time value of money

The time value of money is the value of money estimating in a given amount of interest gain or inflation accrued over a given amount of time. The ultimate principle suggests that a given amount of money today has different buying power than the similar amount of money in the future. This notion exists both because there is a chance to earn interest on the money and because inflation will drive prices up, thus varying the "value" of the money. The time value of money is the basic concept in finance theory.

The method also allows the calculation of a likely stream of income in the future, in a way that the annual incomes are discounted and then calculated together, thus providing a lump-sum "present value" of the entire income stream.

Posted by | Posted Date: 2/13/2013 4:21:40 AM


Related Discussions:- Time value of money, Assignment Help, Ask Question on Time value of money, Get Answer, Expert's Help, Time value of money Discussions

Write discussion on Time value of money
Your posts are moderated
Related Questions
A firm has sales of $6,500, net income of $500, total assets of $12,000, and total equity of $700. Interest expense is $1000. What will be the common-size statement value of the in

Question: Consider the following information:   Stock A Stock B Beta 0.8 1.4 Share price, $

Question : (a) Lucky Corporation is considering an investment in one of the two mutually exclusive proposals: Project A which involves an initial outlay of Rs 170,000 and Proj

FIXED ASSETS                          200 000                       LONG TERM LIABILITIES CURRENT ASSETS CASH             40 000                       LOAN

a) Marketing might be vital to an organisation such as WHSG for several reasons, including: • The need to be a focus for the right kind of students to the school (there are riva

What are the primary variables being balanced in the EOQ (Economic Order Quantity) inventory model?  Explain The primary variables being balanced in the EOQ (Economic Order Quant

discuss the applicability of operating cycle in poultry industry

Explain the factors which company should apply Companies to be the very best must Establish what competition is doing Set the very best standards to exceed Es

How can secondary market organised the exchanges and over the counter markets? Exchanges and over-the-counter (OTC) markets: Secondary markets can be organised by exchanges

Info on applying CVP to product mix limiting factors