Time Value of Money :-

We all intuitively feel that receiving Rs 100 today is better than receiving Rs 100 after sometime. The principles ofpresent value explain how much better it is to receive that 100 today than receiving after a year by enabling us to calculate the value of Rs 100 receivable (say) after one in today’s rupees. Present value is a concept that is intuitively appealing, simple to compute, and has a wide range of applications. It is useful in decision-making ranging from simple personal decisions – buying a house, saving for a child’s education and estimating income in retirement, to more complex corporate financial decisions – Continue reading “Time Value of Money :-“