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Which of the following statements about the time value of money concept is true? It assumes...

Which of the following statements about the time value of money concept is true?

It assumes that people prefer to consume things at some time in the future rather than today.

It assumes that inflation rate remains constant for the foreseeable future.

It means a dollar received today is worth more than a dollar received tomorrow.

It refers to the fact that higher cash flows in earlier years are less desirable

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Answer #1

It means a dollar received today is worth more than a dollar received tomorrow.

This statement is correct

Due to time value of money, dollar worth today is nore than dollar worth tomorrow.

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