Question

The Time value of money must be considered in total outlay decision because?

Answer 1

Answer:

The limitations of a globe are: A globe cannot give the correct idea of the distances between two places. A globe is too small to get the actual size of an area. The types of terrain and landscape of a place cannot really be figured on a globe.

Answer 2

Explanation:

Money has time value because: Individuals prefer future consumption to present consumption. Money today is more certain than money tomorrow. Money today is worth more than money tomorrow in terms of purchasing power.  A dollar received in future is more valuable able than a dollar today. Inflation greatly reduced inflow Cash inflows and outflows occurs at different point. Cashflows are not known with certainty.