A dollar received today is worth more than a dollar received tomorrow because of:
- Higher purchasing powers
- Opportunity cost
- No risk.
What is the time value of money?
The time value of money is a concept that underscores that today's money is of more value than tomorrow's money of the same amount.
This concept shows that the cash at hand can be used for:
- Business expansion
- Investments
- Other expenses.
Thus, given the time value of money, it has been concluded that a "dollar received today is worth more than a dollar received tomorrow."
Learn more about the time value of money at https://brainly.com/question/3811399
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