Why is understanding the time value of money

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Why is understanding the time value of money is crucial for evaluating a company's future projects? Assume you are the CFO of company X and asked to choose between project A that delivers 5 million dollars in year 5 vs project B that delivers 1 million dollar each year from year 1 to year 5. Which project would you choose? Why?

Reference no: EM132343726

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