time value of money

time value of money
The notion that a unit of *money is worth more at present than in the future, owing to the erosion of its value by inflation. The concept is central to *discounted cash flow analysis.

Auditor's dictionary. 2014.

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  • Time value of money — The time value of money is the value of money figuring in a given amount of interest earned over a given amount of time. The time value of money is the central concept in finance theory. For example, $100 of today s money invested for one year… …   Wikipedia

  • Time value of money — The idea that a dollar today is worth more than a dollar in the future, because the dollar received today can earn interest up until the time the future dollar is received. The New York Times Financial Glossary * * * time value of money UK US… …   Financial and business terms

  • time value of money — The idea that a dollar today is worth more than a dollar in the future, because the dollar received today can earn interest up until the time the future dollar is received. Bloomberg Financial Dictionary * * * time value of money UK US noun [U]… …   Financial and business terms

  • Time Value of Money — Der Zeitwert des Geldes (englisch time value of money; TVM) ist ein zentraler Bestandteil der Finanzierungs und Investitionsrechnung, sowie der Finanzmathematik und basiert auf der Verzinsung des Geldes. Wenn man heute der Bank einen Betrag… …   Deutsch Wikipedia

  • time value of money — change in the value of a sum of money over time …   English contemporary dictionary

  • Time Value of Money - TVM — The idea that money available at the present time is worth more than the same amount in the future due to its potential earning capacity. This core principle of finance holds that, provided money can earn interest, any amount of money is worth… …   Investment dictionary

  • time value of money — The concept, used as the basis for discounted cash flow calculations, that cash received earlier is worth more than a similar sum received later, because the sum received earlier can be invested to earn interest in the intervening period. For the …   Accounting dictionary

  • time value of money — The concept, used as the basis for discounted cash flow calculations, that cash received earlier is worth more than a similar sum received later, because the sum received earlier can be invested to earn interest in the intervening period. For the …   Big dictionary of business and management

  • time value — The amount of money option buyer are willing to pay for an option in the anticipation that, over time, a change in the underlying futures price will cause the option to increase in value. In general, an option premium is the sum of time value and …   Financial and business terms

  • Time value — In finance, time value is:* Time value of money; or * Time value of an option.In transport economics, time value refers to:* Value of time …   Wikipedia

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