Saturday, November 8, 2008

What is Time Value of Money

The “time value of money” (TVM) illustrates that a dollar received today is more valuable than a dollar received in the future. A dollar received today can be invested to yield more than a dollar in the future under a risk free rate of return. The time value of money is very important in financing decisions and capital budgeting.

Calculate Average Accounting Return (AAR)

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The information on this site is for informational purposes only and should not be used as a substitute for the professional advice of an accountant, tax advisor, attorney, or other professional.