Define and discuss the importance of the time value of money concepts, including compounding (future value), discounting (present value), and annuities.

 Importance of the time value of money concepts

Activity Context

This discussion helps you develop the skills to master the following course competencies:

o Evaluate alternative methods of financing a firm in diverse economic environments.

Activity Instruction

Define and discuss the importance of the time value of money concepts, including compounding (future value), discounting (present value), and annuities. Why would you as an organization leader need to understand these concepts?

Support your discussion post using the materials in the study for this unit. Support your post as appropriate with the theories presented in this week’s required reading.(see attachment)

Resources

o Discussion Participation Scoring Guide

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