Multiple Choice
Which of the following statements is true of the time value of money?
A) It means a dollar received today is worth less than a dollar received tomorrow.
B) It assumes that inflation rate remains constant for the foreseeable future.
C) It refers to the fact that higher cash flows in earlier years are less desirable.
D) It is based on the assumption that people prefer to consume things at some time in the future rather than today.
Correct Answer:
Verified
Correct Answer:
Verified
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