Question: A dollar received today is worth more than a dollar received tomorrow because of: none of the other answers are correct opportunity cost of time

A dollar received today is worth more than a dollar received tomorrow because of:

none of the other answers are correct

opportunity cost of time

prices rise over time

inflation

Step by Step Solution

★★★★★

3.42 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The detailed answer for the above question is provided below An... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Banking Questions!

Q:

The two segments of the girder are pin connected at B. Draw the shear and moment diagrams for the girder. 15 kip 3 ft-4 ft- 2 ft B C 8 kip. ft 500 lb/ft 12 ft D

Q:

Multiple Choice Questions 1. Calculations of the time value of money are based on the premise that: a. A dollar received today is worth more than a dollar received in the future b. A dollar received...

Q:

Which of the following is true about return on equity? (select all that apply) ROE= profitability x efficiency x leverage ROE=ROSATR ROE=ROAFLR ROE = Net income / Avg shareholders' equity Question 10...

Q:

1. The real rate of interest reflects compensation for? Time value of money Future value Present value None of the options are correct 2. An annuity may be defined as a series of unlimited payments...

Q:

Which of the following statements is incorrect? Group of answer choices All the answers are correct except one. The earnings from compounding drive much of the return earned on a long - term...

Q:

Considering time value of money, using an interest rate that is lower than the actual will A-Increase the present value of $1,000 that will be received 10 years later. B-Increase the future value...

Q:

A dollar received today is worth more than a dollar received tomorrow because of a) opportunity cost of time b) all of the above c) inflation d) interest

Q:

Which of the following statements is incorrect? All the answers are correct except one. Compounding is the process by which interest earned on an investment is reinvested so that in future periods....

Q:

Which of the following statements about the time value of money concept is true? Question 2 options: 1 ) It refers to the fact that higher cash flows in earlier years are less desirable. 2 ) It means...

Q:

Which of the following statements about the time value of money concept is true? It refers to the fact that higher cash flows in earlier years are less desirable. It assumes that people prefer to...

Q:

Which of the following statements about the time value of money concept is true? It assumes that people prefer to consume things at some time in the future rather than today. It assumes that...

Q:

Suresh Co. expects its five departments to yield the following income for next year. Dept. N $ 35,000 Dept. P $42,000 Total Dept. M $63,000 Dept. O $56,000 Dept. T Sales $ 28,000 $224,000 Expenses...

Q:

Inscribe a detailed paper on Investment Analysis: Australia and UK 1. You may take a long or short position in each foreign currency or long position in one or short position on the other. 2. Justify...

Q:

Which of the following is typical when purchasing new equipment instead of used equipment? Multiple Choice It is usually the most expensive option. It is delivered directly to the new business. It is...

Q:

1. Choose one of the documents that exist in your world of work, then take a photo, and find 5 inaccuracies in the word in the document, then analyze!

Q:

Recording and Reporting Multiple Temporary Differences The records of Cross Corporation provided the following income tax allocation data. Taxable income Depreciation expense 2020 2021 2022 2023...

Q:

A table of data is presented for cost of goods sold and ending inventory for the first 6 months of 2002 for Wynn Manufacturing company. Calculate the number of days of cost of goods sold held in...

Q:

1. Choose one of the documents in the world of your work, then take a photo, and find 10 misspellings in the document, then analyze!

Q:

The final section of the opportunity assessment plan developed the timeline, indicating what steps need to be taken to successfully launch the venture.This includes determining the time and money...

Q:

Henrys Hoodies produces a variety of sweatshirts for college students. Henrys produces sweatshirts in batches and currently produces five batches per year. The companys controller recently...

Q:

The following transactions occurred for a company during the year. a. Purchased a 6-month certificate of deposit b. Purchased a 90-day Treasury bill c. Issued 10,000 shares of common stock d....

Q:

In speaking to your companys president you learn that she is more concerned with the impact of internal forces such as the board of directors view on governance than she is with external forces....

Q:

Briefly define or explain each of these tools: a. Brainstorming. b. Benchmarking. c. Run charts.

Q:

A company that handles hazardous waste wants to minimize the shipping cost for shipments to a disposal center from five receiving stations it operates. Given the locations of the receiving stations...

Q:

An analysis of sites for a distribution center has led to two possible sites (L1 and L2 on the map). The sites are comparable on every key factor. The one remaining factor is the center of gravity....