The Concept of Time Value of Money Is Important to Financial

Multiple Choice

The concept of time value of money is important to financial decision making because

A) it emphasizes earning a return on invested capital.
B) it recognizes that earning a return makes $1 today worth less than $1 received in the future.
C) it can be applied to future cash flows in order to compare different streams of income.
D) All of these options are true.