Important to the measurement of financial value

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Question 1a - Why is the time value of money concept so important to the measurement of financial value? Specifically explain or illustrate how this critical concept is used to aid in measuring financial value.

Question 1b – There is an inherent opportunity cost contained in every time value of money calculation. What is this opportunity cost and where is it represented in the Present Value equation? Provide a illustrated example

Question 1c - In your own words describe the fundamental relationship that exists between the Present Value Equation (PV) and The Future Value Equation (FV) and then illustrate this relationship using the PV and FV formula.

Reference no: EM131059656

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