Question

Why is time value of money a primary consideration of financial decisions?

a.

To ensure perfect investments

b.

To eliminate external factors beyond control

c.

To make risk-free financial products

d.

Because the worth of money is different over time

Answer: (d).Because the worth of money is different over time Explanation:Time value of money is a primary consideration of financial decisions because the worth of money is different over time.

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Q. Why is time value of money a primary consideration of financial decisions?

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