Time value of money

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Revision as of 22:29, 10 March 2019 by imported>Doug Williamson (Expand first sentence.)
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(TVM).

Time value of money is the concept that money held now (or receivable immediately) is worth more than the same amount of money to be received at some later time.

The time value of money is reflected in the charging of interest for the use of money, and also in discounted cash flow analysis.


See also