07 February 2014
Is it only me who think Time Value of Money can only decrease over time? Isn't it possible that money will get stronger in the future. Can not the Present Value Interest Factor be (1+r)^t rather than (1/r)^t every time? Please provide the rationale behind all this? Thank you
08 February 2014
Sorry mate i think you didnt got my question. I wanna know what is the rationale behind Discounting the money to reach its future value(implying Weakening Money in future). Isn't it possible Money can get stronger in the future?
13 February 2014
dear Manish it reflects only the passage of time...USD/INR 40 today is not same as USD/INR 40 tomorrow as inflation creeps in and you lose the opportunity to invest the money (if you had it today in your hand) in better opportunities.
CAclubindia
