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Time Value of Money
The time value of money is the price or value placed on time. It is commonly thought of as the opportunity cost related with a particular investment. Money has positive time value associated with it and in the sense in which a given amount of money is worth more than the certainty of having the exact similar sum available at a later time. The reason is that any money received today can be reinvested to earn additional profits during the intervening time period.
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