货币时间价英语.ppt

The Time Value of Money What is Time Value? We say that money has a time value because that money can be invested with the expectation of earning a positive rate of return In other words, “a dollar received today is worth more than a dollar to be received tomorrow” That is because today’s dollar can be invested so that we have more than one dollar tomorrow The Terminology of Time Value Present Value - An amount of money today, or the current value of a future cash flow Future Value - An amount of money at some future time period Period - A length of time (often a year, but can be a month, we