Time value of money supports the comparison of cash flows recorded at different time period by
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Answer:
It is either by using discounting or compounding of all the cash flows at same point of time.
Explanation:
Time value of the money is the concept which states that the cash received in current year is more worth than the same amount received at the later date as money has the potential to earn interest.
The time value of money help the comparison of the cash flows which reported at different time period by using either of the two:
a. Discounting all the cash flows to a usual point of time
b. Compounding all the cash flows to a usual point of time
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