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
LKL PLC Project VZ (a) Cash Flow budget and NPV WORKINGS

How are production limits used in practice to raise the prices of the following goods or services: (a) taxi rides, (b) drinks in a restaurant or bar, (c) wheat or

Financial Analysis Project: At the beginning of 2009, CanGo purchased the online gaming company. This purchase was for cash, paid for through the proceeds of the


Shareholders' wealth maximization Shareholders' wealth maximization refers to maximization of the net present value of every decision made in the firm. Total present value is e

Explain Speculator - Market Participants A speculator attempts to profit from a modification in the futures price. For doing this, the speculator will take a long or short posi

Sovereign Rating This includes rating a country as to its creditworthiness, probability of default, etc.

Why the term objective is used for The term is used in a rather narrow sense of what a firm must attempt to achieve with its financing, investment and dividend policy decisions

When a company commits (implicitly or explicitly) to granting at-the-money options to employees in the future then we can view them as a forward start options. a) Explain the di

Evolution of Hedge Funds: The establishment of the first Hedge Fund in the United States in the year 1949 by Alfred W. Jones marked the evolution of Hedge Fund industry. It was