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What is the basic premise of the time value of money

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Question - In your own words, please answer the following questions. One paragraph each will be fine.

The concept of Time Value of Money is at the center of Capital Budgeting Decisions. With that in mind, let's answer these questions:

1. What is the basic premise of the Time Value of Money?

2. What is the difference between Future Value and Present Value?

3. What is the difference between a lump sum (or single payment) and an annuity? (Both Future and Present Values can have both.)

Reference no: EM132073737

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