Module 02 Discussion – Importance of Time Value

The concept of time value of money has numerous “real-world” applications. Some of the applications range from calculating the payment for a car or mortgage to estimating what interest rate is needed on an investment to send your child to college in 20 years.

In your discussion, respond to the following two questions:

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  • Do you believe the concept of time value money is important in ordinary business relationships? Explain.
  • How would you use a concept of time value to determine the value of the business?

For your initial post, please respond with a minimum of 150 words. This will allow your instructor to ascertain whether you completely understand the concepts covered.