time value of money

time value of money

We are told that a dollar today is worth more than a dollar tomorrow. This is logical just due to the effects of inflation alone, but there are a multitude of other factors that also play into this phenomenon. The most significant concern among those factors is the issue of risk. Given that any future investment is based on a set of assumptions and educated guesses, we have to factor in the effects of risk as we look at the value of money over time.

For this discussion, do the following:

  • Locate at least one online resource (a link, article, or book, for example) pertaining to the application of time value of money and/or risk & return either within the healthcare field.
  • In your discussion, examine the content and then share the resource (post your resource and use APA style). Summarize the resource(s) and what you find useful about it.

Answer preview

Value of an entity is measured basing on the time it exists and its demand too. The value of a dollar today will not be the same in three years to come from now. This determined by factors like inflations, political stabilities of countries among others. In the healthcare industry time value for money is based on risk on future investments which are most uncertain.(371words)

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