Question: 1 . The notion that money has time value is based on the existence of a non zero opportunity rate ( i . e .

1. The notion that money has time value is based on the existence of a nonzero opportunity rate (i.e., a rate of return at which it is possible to invest). Why is the opportunity rate so important? Construct an example that shows, with an opportunity rate of 0%, that the value of $1 received today will be $1 in the future.

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