Post Utme Noun 2017 Commerce Question 24

Practice objective / multiple choice question 24 from the 2017 Post Utme Noun Commerce examination.

Post Utme Noun 2017 Commerce Objective / Multiple Choice
Question 24 POST_UTME_NOUN • 2017 • COMMERCE • objective
Post Utme Noun 2017 Commerce Question 24 diagram

A company is considering investing in a new project. Explain the concept of 'time value of money' and how it applies to this decision, using a diagram to illustrate your answer.

Answer Options

Correct Answer A. The time value of money is the concept that money received today is worth more than the same amount of money received in the future, due to the potential for earning interest.
B. The time value of money is the concept that money received in the future is worth more than the same amount of money received today, due to the potential for earning interest.
C. The time value of money is the concept that money received today is worth the same as the same amount of money received in the future, due to the potential for earning interest.
D. The time value of money is the concept that money received in the future is worth less than the same amount of money received today, due to the potential for earning interest.
Correct Answer
A
Correct Option:
The time value of money is the concept that money received today is worth more than the same amount of money received in the future, due to the potential for earning interest.

About This Question

This is Post Utme Noun 2017 Commerce Question 24. It is one of the objective questions from the 2017 Post Utme Noun Commerce examination.

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