Open Access. Powered by Scholars. Published by Universities.®

Education Commons

Open Access. Powered by Scholars. Published by Universities.®

2012

Book Gallery

Rural Tax Education

Money

Articles 1 - 1 of 1

Full-Text Articles in Education

Time Value Of Money, Warren Lee Aug 2012

Time Value Of Money, Warren Lee

Rural Tax Education

The outcomes of most business decisions occur over an extended period of time, often several years. Thus, most decisions should be analyzed using the concept of time value of money. The time value of money is the general universal preference for “a dollar in hand today is worth more than the prospect of receiving a dollar on some future date”.

It is generally accepted that if you were offered a choice of two alternatives, a gift of $1,000 today or a gift of $1,000 on some future date, such as one year from now, you would elect to ...