We’ve all heard the expression, “Time is money,” and time value of money calculations certainly depict this sentiment. Respond to the following in a minimum of 175 words: Share an example of a...

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We’ve all heard the expression, “Time is money,” and time value of money calculations certainly depict this sentiment.






Respond to the following in a minimum of 175 words:



  • Share an example of a situation when you used TVM calculations to support a financial decision either in your professional or personal life. (If necessary, share a hypothetical example of when you might use TVM calculations.)

  • Discuss which TVM calculations you used to support your financial decision and the benefits this provided.

  • In the example you shared, how was cash flow impacted by your decisions?



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Answered Same DayDec 03, 2021

Answer To: We’ve all heard the expression, “Time is money,” and time value of money calculations certainly...

Abhishek answered on Dec 04 2021
166 Votes
Running Head: CORPORATE FINANCE        1
CORPORATE FINANCE        2
CORPORATE FINANCE
Table of Contents
Exam
ple of a Situation Using Time Value of Money (TVM)    3
Benefits provided by TVM in Financial Decision    3
Impacts of the Decisions on the Cash Flow    4
References    5
Example of a Situation Using Time Value of Money (TVM)
The general formula of TVM is:
Present Value = Future Valued divided by 1+ rate of interest.
This formula states that the present value of money will become more significant in future. Concerning this TVM calculation, I have undertaken certain serious and valuable financial decisions in my life. I have invested in liquid cash in share markets. Since the TVM calculations show the value of money increases over time, the money invested in share markets will be doubled with the period of time (Hung, 2016).
I have undertaken...
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