Time Value of Money (TVM) - the Intuition
A cash flow today is worth more than a cash flow
in the future since:
Individuals prefer present consumption to
Monetary inflation will cause tomorrows
dollars to be worth less than todays.
Fisher College of Business
The Ohio State University
CORPORATE FINANCIAL ANALYSIS
Bernadette A. Minton, PhD.
I. First Class
Market Value: Concepts & Assumptions
Financial Manager and Shareholders
We have to work with money every day. While balancing your checkbook or calculating
your monthly expenditures on espresso requires only arithmetic, when we start saving,
planning for retirement, or need a loan, we need more mathematics