Business Finance
MSA 698 Central Michigan University Foundation of Finance Time Value of Money Essay

MSA 698

Central Michigan University

MSA

Question Description

I’m working on a Management question and need guidance to help me study.

  1. Title Page. The title should be descriptive and suggest the paper’s purpose
  2. Table of Contents
  3. Contain an introduction, body of paper, and conclusion.
  4. Appendices (if applicable):
  5. Reference List (every citation, in the Text, must be correctly listed in the Reference List) The References in the back of this Syllabus are in correct A.P.A. Format! There must be 6 to 10 scholarly references per paper.
  6. If you have more than one Table, a List of Tables Page follows the Table of Contents
  7. If you have more than one Figure, a List of Figures Page follows the Table of Contents or the List of Tables Page (if there is a List of Tables Page).

Students must follow the most recent edition of the A.P.A. Publication Manual, when submitting the papers required for this course.

Format:

  • a. Blank page
  • b. Executive Summary
  • c. Title Page
  • d. Table of Contents
  • e. List of Tables (optional)
  • f. List of Figures (optional)
  • g. The Text
  • h. References

Unformatted Attachment Preview

MSA 602-Proposal The course MSA 602 brought light to the foundation of finance. This course focused on the financial assets of a company. One area that I discovered to be interesting was the topic of the time value of money. As many on us have heard the saying, “Time is money” in reference to the fact that we shouldn’t waste time due to its high value. However, if that is the case and time is just as if not more value than money, how do we calculate that? In my MSA 602 paper, I intend on revealing the answer to the question based of the information by comparing the similarities and differences between the financial objectives of private, public, and non-profit organizations and assessing, interpreting, and understanding financial statements and information to determine an organization’s financial position and health. Any company whether it’s big or small needs money to operate. In order to make money it must first spend money on inventory, supplies, equipment, facilities, and employee wages and salaries. Therefore, finance is critical to the success of all companies. Finance management is the art and science of managing a firm’s money so that it can meet its goals. Management of a firm’s finances is just as much a key to the firm’s success. ...
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Final Answer

Attached.

Running Head: UNDERSTANDING THE CONCEPT OF TIME VALUE OF MONEY (TVM)

UNDERSTANDING THE CONCEPT OF TIME VALUE OF MONEY (TVM)

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Executive Summary
Time value of money has been used in many ways over an extended period to appraise
projects and understand the impact of time on the purchasing power of a dollar. This project
highlights the concept of the time value of money by considering other aspects such as the
impact of TVM on the real purchasing power of money, project appraisal, highlighting the
formula used, and considering the discounted cash flow techniques such as NPV in project
appraisal. The project will conclude by highlighting similarities and differences between the
financial objectives of private, public, and non-profit organizations.

UNDERSTANDING THE CONCEPT OF TIME VALUE OF MONEY (TVM)

Understanding the concept of time value (TVM)
Name
Instructor
Institutional Affiliation
Date

3

UNDERSTANDING THE CONCEPT OF TIME VALUE OF MONEY (TVM)

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Table of Contents
Introduction ................................................................................................................................................... 5
Understanding time value of money ............................................................................................................. 5
Time value of money formula................................................................................................................... 5
How the time value of money concept works ............................................................................................... 7
The time value and the purchasing power ................................................................................................ 7
The Discounted Cash flow and the TVM ................................................................................................. 8
The Net Present Value Technique ........................................................................................................ 9
Similarities and differences between the financial objectives of private, public, and non-profit
organizations ............................................................................................................................................... 11
Conclusion .................................................................................................................................................. 11
References ................................................................................................................................................... 13

UNDERSTANDING THE CONCEPT OF TIME VALUE OF MONEY (TVM)

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Introduction
The time value of money (TVM) is the concept that the money available at the present
moment is worth more than the same amount in the future because of its potential earning
capacity. It is a fundamental concept in finance that holds that money has the potential to earn
interest; as such, any amount of money is worth more in the future. The time value of money
concept is sometimes referred to us the present discounted value. Rational investors use the
concept of TVM in drawing their investment idea (Chen, 2009). In other words, such investors
believe that money received today is worth more than the same amount received in the future
because money has the potential to...

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