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Essay

Valuation Principles

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Issue:

Business

 

Written by:

Mattie M

 

Date added:

December 17, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 722

 

Was viewed:

578 times

 

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Essay content:

A dollar today is worth a dollar today: therefore, a dollar next year must be worth less than a dollar today since it is less preferable/valuable. In other words, the same amount of money will be more or less valuable depending upon when it is received. What would you prefer, $100 today or $100 in one year from today? Most people prefer $100 today since it gives them the option to spend it today or save it and spend it in one year...
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Receiving $100 in one year doesn't allow for $100 in consumption today. For equal amounts of money, the decision when to take money --today or in the future-- is an easy one: sooner is always better than later. But what about situations where the amounts differ? What decision rule should be used in those situations? For example, what is preferable? $100 today or $133...
displayed 300 characters

General issues of this essay:
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