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Andrej [43]
3 years ago
14

A dollar available today is always worth more than a dollar not available until a future period.

Business
1 answer:
Lostsunrise [7]3 years ago
8 0

Answer:

The statement is: True.

Explanation:

The Time Value of Money is a concept that states a dollar today is always worth more than a dollar tomorrow. The theory relies on the earning capacity of money. The approach is the reason why entrepreneurs prefer to capitalize on their investments the soonest so the more money available now will represent for them more money accrued in the future.

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Since Serena has to rank several alternatives for purchasing a new piece of equipment based on the fact that there is constraint with regards to the availability of funds, this is capital rationing.

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Salutations!

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