Question

What important aspects are required to understand the concept and practice of the time value of money?

a.

Only Timing and the amount of each cash flow in a stream

b.

Timing and the amount of each cash flow in a stream, and Future value of each cash flow

c.

Timing and the amount of each cash flow in a stream, Future value of each cash flow, and Present value of each cash flow

d.

Only Intra-year compounding and discounting

Posted under IC 89 Management Accounting

Answer: (c).Timing and the amount of each cash flow in a stream, Future value of each cash flow, and Present value of each cash flow Explanation:Important aspects required to understand the concept and practice of the time value of money include timing and the amount of each cash flow in a stream, future value of each cash flow, and present value of each cash flow.

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Q. What important aspects are required to understand the concept and practice of the time value of money?
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