The time value of money Flashcards
1
Q
what must we always thin about with money?
A
return and risk
2
Q
What is the time value of money?
A
the idea that a pound today is worth more than tomorrow because of interest rates and earning power of money. It refers to the buying power of the pound over time
3
Q
Factors to consider when making TVM decisions
A
size of cash flows
time between cash flows
rate of return we can earn
