Question: Principle 1: Money Has a Time Value Reflect on how the value of money changes over time due to earning potential or inflation. Discuss why
Principle 1: Money Has a Time Value Reflect on how the value of money changes over time due to earning potential or inflation. Discuss why this principle is crucial for investment and borrowing decisions. Provide a real-world example. Principle 3: Cash Flows Are the Source of Value Explain its importance in finance or personal decision-making. Consider why cash flows, not profits, are the foundation of a company's valuation. Provide a real-world example to illustrate how cash flows drive financial decisions
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