--%>
Assignment Help - homework help

Why does money contain time value

Why does money contain time value?

Positive interest rates denote that money has time value. While one person lets another borrow money, the first person needs compensation in exchange for decreasing current consumption. The person who borrows the money is eager to pay to increase current consumption. The required rate of return on investment reflects the pure time value of money, adjustment for expected inflation, and any risk premiums present.

   Related Questions in Finance Basics

  • Q : Describe time value of money Describe

    Describe time value of money?The time value of money means that money you have in your hand today is worth more than money you expect to obtain in the future. Likewise, money you have to pay out today is a greater burden than the similar a

    		•
  • Q : Explain Department of Finance

    Department of Finance (Finance): The Director of Finance functions as the Governor’s chief fiscal policy advisor with the emphasis on financial integrity of the state. Finance is delegated the accountability for preparation of the Governor's Bud

    		•
  • Q : Explain non diversifiable risk and how

    Explain non diversifiable risk? How is it measured? Unless the returns of one-half the assets into a portfolio are entirely negatively correlated along with the other half-that is extremely unlikely-some risk will

    		•
  • Q : Describe the bird in the hand theory of

    Describe the bird in the hand theory of cash dividends. The bird in the hand dividends theory says that dividends attained now are better than a promise of future dividends. Uncertainty is resolved while a dividend is paid.

    		•
  • Q : Explain 3-year Expenditures and

    3-year Expenditures and Positions: The display at the beginning of each departmental budget which presents the different departmental programs by title, dollar totals, places, and source of funds for the past, current, and budget years.

    		•
  • Q : Financial crisis of India during 1997 I

    I have to explain Financial crisis of India during 1997. Can someone help me in this question ?

    		•
  • Q : Biometrics in banking operations

    Biometrics is one kind of technology that can be used to control these kinds of fraudulent practices. May be it is the system which cannot completely stop the practices but yes at least it is the way which can reduce it to the barest minimum. The conv

    		•
  • Q : Define Final Budget Summary Final

    Final Budget Summary: A document generated by the Department of Finance subsequent to enactment of the Budget Act that reflects the Budget Act, any vetoes to the language and/or appropriations, technical corrections to the Budget Act, and summing up t

    		•
  • Q : Why too little debt is as unwanted as

    If an optimal capital structure exists, describe reasons why too little debt is as unwanted as is too much debt? Too little debt may be as unwanted as too much debt since if a firm contains a very conservative capital structures it may be losing

    		•
  • Q : Describe factors which common

    Describe some factors which common stockholders consider while deciding how much, if any, cash dividends they want from the corporation wherein they have invested? Common stockholders would assume the company's investment opportunity, their requ

    		•