Question

What is the definition of the time value of money?

a.

The worth or value of a rupee received today is the same as the worth of a rupee to be received in the future.

b.

The worth or value of a rupee received today is different from the worth of a rupee to be received in the future.

c.

The worth or value of a rupee received today is uncertain.

d.

The worth or value of a rupee received today is less than the worth of a rupee to be received in the future.

Posted under IC 89 Management Accounting

Answer: (b).The worth or value of a rupee received today is different from the worth of a rupee to be received in the future. Explanation:Time value of money means that the worth or value of a rupee received today is different from the worth of a rupee to be received in the future.

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