1Time Value of Money QuestionYou are offered two options to receive a cash payment. Option A: $100 todayProf. Q. MaHADM 2222: Time Value of Money0Option B: $107 in future year tWhich one is more valuable to you?General QuestionEarlier timeLater timeProf. Q. MaHADM 2222: Time Value of Money1Time Line$$$$ (PV)$$$$$$ (FV)Learning ObjectivesBe able to computeThe FV of a cash payment made todayThe PV of cash at some future dateThe return (r) on an investmentThe number of periods (T) that equates a PVProf. Q. MaHADM 2222: Time Value of Money2The number of periods (T) that equates a PV and an FV given an interest rate (r)Be able to use a financial calculator to solve TVM problems
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