Explain the time value of money. Incorporate terms such as discount rate and present value
What will be an ideal response?
Most techniques used to determine economic feasibility encompass the concept of the time value of money (TVM), which reflects the notion that money available today is worth more than the same amount tomorrow. Benefits from systems development will likely occur sometime in the future. Because many projects may be competing for the same investment dollars and may have different useful life expectancies, all costs and benefits must be viewed in relation to their present value when comparing investment options. The rate at which money can be borrowed or invested is referred to as the cost of capital, and is called the discount rate for TVM calculations. Present value is the current value of a future cash flow.
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Indicate whether the statement is true or false.
Gwen works as a stockbroker, and she is experiencing the symptoms of job stress. All of the following would most likely help Gwen reduce her stress levels EXCEPT ________
A) making a list of problems and possible solutions B) putting off dealing with distasteful problems C) requesting realistic project deadlines D) limiting interruptions