Question: ( The five basic principles of finance ) There are four basic principles of finance. Which principle correctly describes the following statement: A dollar today
The five basic principles of finance There are four basic principles of finance. Which principle correctly describes the following statement: "A dollar today is worth more than a dollar received in the future. Conversely, a dollar received in the future is worth less than a dollar received today"? Select the best choice.
A
Principle: Money has a time value.
B
Principle: There is a riskreturn tradeoff.
C
Principle: Cash flows are the source of value.
D
Principle: Market prices reflect information.
E
Principle: Individuals Respond to Incentives.
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