Time Value of Money

Routledge eBooks 2026 Book chapter

View at publisher
Authors: Sandeep Goel
DOI: 10.4324/9781003730163-5
Cited by: 0

Abstract

The time value of money (TVM) is the foundational concept in capital budgeting decisions. Its main purpose is to compare different investment options for the current purchasing power of money. The time value of money should be appropriately taken into account when making capital budgeting decisions; otherwise, failing to do so would make the capital budgeting analysis impracticable.

Fields of Study & Subjects

Capital Investment and Risk Analysis Financial Analysis and Corporate Governance Financial Reporting and Valuation Research

Publication details

Journal / source
Routledge eBooks
Pages
23–32
Publication date
26 February 2026
Language
EN
Document type
Book chapter