Question

In: Finance

The time value of money principle implies that all other things being equal, investments that pay off faster are preferred over those that pay off later.

The time value of money principle implies that all other things being equal, investments that pay off faster are preferred over those that pay off later.

a. true

b. false

Solutions

Expert Solution

Option a

Time value of money implies that value of money received earlier is more than value received later as it can be reinvested earning some return for the balance time period.


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