1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zubka84 [21]
3 years ago
10

Why is there a time value of money (cash received today is valued more than cash received a year fromnow)?a. Interest rates are

greater than zero.b. Inflation.c. Consumption needs.d. risk.e. a and b are correct.f. c and d are correct.
Business
1 answer:
Simora [160]3 years ago
7 0

Answer:

<u>A and B are correct</u>

Explanation :

  • The TVM concept is based on the value of money which is today may change with time as a rise or fall in prices thus this explains why the interest rates are paid and calculated on the basis of the present values that may change such as future sum of money of cash flows, can get discontinued at the discounted rates.
  • Future values can be ascertained based on the present value of the product/assert. Thus the interest rates and inflation rates change as the risks and the consumer's needs will always be present and have existed earlier.
  • It's calculated by the present value and future value of money multiplied by the interest rate and the total number of years. I.e
  • FV = PV x [ 1 + (i / n) ] (n x t)
You might be interested in
A combination of a sole proprietorship and corporation
egoroff_w [7]
The answer is cooperative. It is described as jointly-owned and democratically-controlled enterprise. It includes <span>non-profit community organizations. There are many types of cooperatives such as worker cooperatives, consumer cooperatives, and producer cooperatives.</span>
8 0
3 years ago
Convincing colleagues and friends to donate at or near the maximum amount of $2,700 to an individual candidate and then deliveri
adoni [48]

Delivering all the check all together is a classic example of Bundling. It is a marketing strategy that joins products or services together in order to sell them as a single combined unit this allows the convenient purchase of several products and/or services from one company. The services and products are practically related, but they can also be of dissimilar products which appeal to one group of customers.

<span> </span>

4 0
3 years ago
CAN SOMEONE PLEASE HELP ME WITH MY ECONOMICS CLASS I BEEN STRUGGLING ON IT PLEASEEE HELP ME !!!!
vitfil [10]

Answer:

can u tell me what it is and I'll help

8 0
3 years ago
What is the most likely reason some people avoid all carbohydrates in order to lose weight?
liberstina [14]

Answer:

People avoid carbohydrates, because they have a high calory density.

6 0
3 years ago
Rick likes to watch two television programs that air at the same time on different channels. He simultaneously watches both prog
never [62]

Risk is engaging in zapping

3 0
3 years ago
Other questions:
  • On Michigan state waters, which power-driven vessels are required to carry a whistle on board?
    14·1 answer
  • Is producer surplus and economic profit the same thing?
    13·1 answer
  • Lynn walks into a local convenience store to buy chewing gum. she more than likely will employ _____ in deciding to make that pu
    13·2 answers
  • The promotional mix includes advertising, personal selling, sales promotion, __________, and direct marketing. A. public relatio
    15·1 answer
  • Because of the high volume of bicycles as a common form of transportation in Beijing and Shanghai, Charles wants to sell his bic
    9·1 answer
  • Acquisition of Land and Building On February 1, 2016, Edwards Corporation purchased a parcel of land as a factory site for $100,
    14·1 answer
  • The development cost of a project X is $150,000. The operating costs for year 1, 2 and 3 respectively are $5000, $6000, and $ 70
    15·1 answer
  • Bellingham Company produced 4,200 units of product that required 7 standard direct labor hours per unit. The standard variable o
    9·1 answer
  • If a 20 percent increase in the price of Red Bull energy drinks results in a decrease in quantity demanded of 25 percent, we say
    10·1 answer
  • Which of the following is not an example of a<br>n IDE device??​
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!