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TIME VALUE OF MONEY

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(Querist)
19 August 2008


WHAT IS THE MEANING OF TIME VALUE OF MONEY?
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Vishnu Agarwal

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Vishnu Agarwal (Querist)
19 August 2008 GIVE ANY EXAMPLE OF IT.
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Vishnu Agarwal

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Vishnu Agarwal (Querist)
19 August 2008 REPLY AS EARLY AS POSSIBLE
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Subash Gaijes

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Subash Gaijes (Expert)
19 August 2008 Mr. Vishnuagarwal,
Go through this small example.
Your dad, in his childhood could have watched a movie for 50 paise or a rupee. But now u can get only a candy for 50 paise. This is time value of money. As years go, the value of money will decrease, in proportion to the inflation rate. If u discount the cashflows with the discounting factor, ie inflation rate, u will get present value of money.
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Vishnu Agarwal

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Vishnu Agarwal (Querist)
19 August 2008
thanx
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Vishnu Agarwal

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Vishnu Agarwal (Querist)
19 August 2008

thanx for replying
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