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Time Value of Money
Time Value of Money
Recognition of the fact that money can earn compound interest and, therefore, a given amount of money paid at different points in time has a different value; the further into the future an amount is paid, the less valuable it is.
(Graham, Andrew. Financial Management in Canada’s Public Sector. Kingston, ON: School of Policy Studies, Queen’s University; Montreal : McGill-Queen’s University Press, 2007)
Approved for glossaryposting by Ben Eisen on February 27, 2011