管理会计 (66)管理会计.pdf

– The time value of money Introduction to project appraisal. A long-term view of benefits and costs must be taken when reviewing a capital expenditure project. Discounted cash flow (DCF) approaches (net present value and internal rate of return) take the principle that a pound received in the future is not worth as much as a pound received today. 2 The time value of money Money received today is worth more than the same sum received in the future. i.e. it has a time value. The r