which method uses time value of money???
Answers
Answer:
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Answer:
The time value of money is sometimes referred to as the net present value. NPV analysis is a form of intrinsic valuation and is used extensively across finance and accounting for determining the value of a business, investment security, (NPV) of money.
Explanation:
The time value of money (TVM) is the concept that money you have now is worth more than the identical sum in the future due to its potential earning capacity. This core principle of finance holds that provided money can earn interest, any amount of money is worth more the sooner it is received.
Determining the Time Value of Your Money
Number of time periods involved (months, years)
Annual interest rate (or discount rate, depending on the calculation)
Present value (what you currently have in your pocket)
Payments (If any exist; if not, payments equal zero.)
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