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Explain the relevance of time value of money in financial decisions?

Finance
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Question added by Abdul Khalique , Finance Manager , Value Real Estate & Construction
Date Posted: 2016/03/13
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Moustafa Mahmoud Sharafeldeen Moustafa
by Moustafa Mahmoud Sharafeldeen Moustafa , CFO , FAKHR INVESTMENT HOLDING CO

The time value of money (TVM) is an important concept to investors because a dollar on hand today is worth more than a dollar promised in the future; the dollar on hand today can be used to invest and earn interest or capital gains. A dollar promised in the future is actually worth less than a dollar today because of inflation.

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