concept of time value of money
- Examine the concept of time value of money in relation to corporate managers. Propose two (2) methods in which time value of money can help corporate managers in general.
- Examine the pros and cons of a sinking fund from the viewpoint of both a firm and its bondholders. Determine the fundamental manner in which this knowledge could be helpful to a financial manager. Provide a rationale for your response.
Answer PreviewTime value of money holds the concept that current money has more worth than the same amount of money in the future. It uses the finance principle of more worth is gained on money which has the ability to earn interest if the time received is shortened. The discount rate puts into consideration the concepts of time value in its calculations (Damodaran, 2011). This is the rate…
(473 Words)