In: Finance
Which area of business can not use the time-value concept ?
- Accounting
- Marketing
- Manufacturing
- Budgeting
Marketing is the correct answer.
The time value of money is an essential topic for investors because a dollar today is valued more than a dollar guaranteed in the future.
Companies will recognize the time value of money while choosing whether to procure new business equipment or to spend in further product advancement and secure credit terms for marketing products.
The time value of money formula can use in Capital budgeting, Valuation of companies, Loan amount and EMI calculation, Annuity Calculation, Insurance premium calculation.
The time value of money is essential in capital budgeting choices because it enables business partners to adjust cash flows.
Whereas Marketing considers the factors like understanding of the target market, the competition, communicating the product value to customers, observing the data, the product life cycle, going in front of the right consumer, and different selling plan.
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