CMA Inter Paper 11 (FMDA) Practice Questions - CMA Intermediate Paper 11 Financial Management And Business Data Analytics Exam

Time value of money is relevant in financial decisions chiefly because:

A rupee received today is worth more than a rupee received in the future due to its earning capacity Inflation always equals zero in financial models Money never loses purchasing power over time Interest rates are irrelevant to investment decisions

Correct Answer:

A rupee received today is worth more than a rupee received in the future due to its earning capacity

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