The Time Value of Money in Financial Management

Abstract

The Time Value of Money is a important concept in financial management. The Time Value of Money (TVM) includes the concepts of future value and discounted value. It is mandatory for a financial professional to know and operate the specific techniques of TVM. Within the present article we present the basic notions and illustrate their application in the field of investment projects. The case studies presented are valuable for an efficient financial management.

Keywords

• time value of money
• present value
• future value