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Essay

Time Value of Money

Essay specific features

 

Issue:

Business

 

Written by:

Lizzie S

 

Date added:

September 18, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

12 / 3158

 

Was viewed:

2266 times

 

Rating of current essay:

 
Essay content:

In order to ensure that business endeavors and projects are going to increase profits and the value of the organization, financial managers look at the time value of money. The time value of money is a tool to understand the effective rates on business loans or the true return on an investment by helping the manager determine the actual value of money now and in the future based on interest rates, discount rates, expected costs, and expected sales...
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Through targeted analysis, organizations are able to use this information to decide whether projects, big or small, simple or complex, are going to be beneficial to the company. By observing various tools and indicators such as future value, present value, future value of an annuity, and present value of an annuity, companies can determine the expected return on an investment to ensure that it will result in increased profits...
displayed 300 characters

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