Joaness Quizz

It is a concept that a sum of money is worth

more now than the same sum will be at a

future date due to its earnings potential in

the interim?

• Time Value of Money

• Understanding TUM

• Short Term Financial

• None Of the Above

It is a concept that a sum of money is worth

more now than the same sum will be at a

future date due to its earnings potential in

the interim?

• Time Value of Money

• Understanding TUM

• Short Term Financial

• None Of the Above

Is a series of cash flows in which

equal amounts happen at regular, periodic

intervals.

Investors prefer to receive money today

rather than the same amount of money

in the future because a sum of money,

once invested, grows over time?

• Marketing

• Evaluating Time

• Understanding

  TVM

• None Of The Above

Why does TVM

matter?

• It equalizes options based on timing, as Absolute dollar amounts spanning

  different time spans should not be valued equally

• Inflation has a negative impact on

  the time value of money because

  your purchasing power decreases as

  prices rise

• strategic, long-term

  financial decisions such as whether to invest

  in a project or which cash flow sequence is

  most favorable.

• None Of The Above

It is used to make_____ such as whether to invest

in a project or which cash flow sequence is

most favorable.

Inflation has a negative impact on

the time value of money because

your purchasing power decreases as

prices rise.

• Long term Demand

• Short term Demand

• Financial

• Key takeaways

The value of a current asset at some

point in the future based on an

assumed growth rate

The current value of a future sum of

money or stream of cash flows given a

specified rate of return?

It is the monetary charge for borrowing

money—generally expressed as a

percentage, such as an annual percentage

rate (APR).