Why is a dollar today worth more than a dollar one year from now?

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 08, 2012 01:22 AM

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A dollar today is worth more than a dollar in the future. The present value of a future dollar is worth less than one dollar. Are these two statements synonymous? Explain.
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Why is a dollar today worth more than a dollar one year from now?

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Fundamentals of corporate finance

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