The time value of money

 

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

The time value of money is a critical concept to understand in accounting, especially when working with loans, investment analysis, and capital budgeting decisions. Time value of money can be used to decide which projects to start and what investments to make.  

Please respond to the following: 

  • Explain two decisions a CPA might make (such as lease payments, bonds, and postretirement benefits) using the time value of money. Be sure to provide specific examples. 
  • Be sure to respond to at least one of your classmates’ posts

 

Class,

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

The time value of money is a great tool used in the financial industry. Simply stated, the concept is a dollar today is worth more than a dollar in the future due to the opportunities to invest an increase the value of that dollar. Two decision an accountant might make deals with lease payments and the benefits of bond investments.

In the current financial climate, with many businesses still recovering from the effects of COVID 19, some lease contracts have been in jeopardy of default. A lease contract of $27,000 even in a downturned economy has the potential to triple in value given an interest rate of 10% and a due date of 6 years.  

The concept of time value is also important when lenders are deciding on investment opportunities. A   $777,989 bond paying 8% for 8 years can accumulate to $1.4 million odd.  That would be a great long-term investment.

Vanessa Harrison

Calculate your order
Pages (275 words)
Standard price: $0.00
Client Reviews
4.9
Sitejabber
4.6
Trustpilot
4.8
Our Guarantees
100% Confidentiality
Information about customers is confidential and never disclosed to third parties.
Original Writing
We complete all papers from scratch. You can get a plagiarism report.
Timely Delivery
No missed deadlines – 97% of assignments are completed in time.
Money Back
If you're confident that a writer didn't follow your order details, ask for a refund.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Power up Your Academic Success with the
Team of Professionals. We’ve Got Your Back.
Power up Your Study Success with Experts We’ve Got Your Back.
Open chat
1
Order through WhatsApp!
nursingesssayswritings.com
Hello!
You Can Now Place your Order through WhatsApp

Order your essay today and save 30% with the discount code ESSAYHELP2