0
What is the importance of time value of money in financial decision making?
Wiki User
∙ 9y ago
The importance of time value of money in financial decision making is because money in your today is worth more than the sum at a future date. If you take the money you have today and invest it, you will have more money in the future than if you wait to take the money.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
What is influencing decision making?
Money
How do you motivate people to save money?
By making them realize the importance of their money
Qualitative factors in decision making?
considerations in decision making, in addition to the quantitative or financial factors highlighted by incremental analysis . They are the factors relevant to a decision that are difficult to measure in terms of money. Qualitative factors may include: (1) effect on employee morale, schedules and other internal elements; (2) relationships with and commitments to suppliers; (3) effect on present and future customers; and (4) long-term future effect on profitability. In some decision-making situations, qualitative aspects are more important than immediate financial benefit from a decision.
Differences between financial and non-financial information?
Financial information is concerned with making money and managing money for the organization. Non-financial information is information about customers, suppliers, etc.
What is the Importance of financial service?
Financial services are extremely important when it comes to money management. Not everyone is a great money manager, but financial services employees are trained in the best methods for helping consumers save more and spend less.
What is importance of financial services?
Financial services are extremely important when it comes to money management. Not everyone is a great money manager, but financial services employees are trained in the best methods for helping consumers save more and spend less.
Impact of future value in financial decision?
The future value of money is important in a business decision because you don't want to get less than the future value. You also want to make sure you make money if you will not have access to your money.
What is the scope and importance of financial accounting?
Financial accounting covers both the money coming into a business and the expenses being paid. It is important to consider both because it allows for an accurate understanding of how the money is flowing.
How can managers improve their decision making?
by working hard to get better money and to get some where in life
Should financing cost be included as an incremental cash flow in capital budgeting analysis?
Incremental Cash flows are included in capital budgeting decision and if capital budgeting decisions require acquisition of money from open market then its financial cost is also relevant for decision making and it is also included in it.
What does economically sound means?
Economically sound basically means being smart about finances, or making a good financial decision. Economic= money, sound= smart. For example, "It may be economically sound for Amy to buy a new car, rather than keep putting money into repairs."
What are the financial benefits of a fedelity municipal money market?
Investing in a fidelity municipal money market reaps many financial benefits. The longterm benefits greatly outweigh the short term costs as long as you are financially responsible about your decision.
