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Essay Available:
Pages:
2 pages/≈550 words
Sources:
2 Sources
Style:
APA
Subject:
Accounting, Finance, SPSS
Type:
Other (Not Listed)
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 9.36
Topic:

Time Value of Money and its Relevance to Management's Decision Making

Other (Not Listed) Instructions:

Write a memo to a coworker explaining the Time Value of Money and how it is relevant to management's decision making. The memo must be in business style. Here is some guidance copied from How to Write a memo [Template & Examples] (hubspot.com)
TO:
FROM:
DATE:
SUBJECT:
I'm writing to inform you that [reason for writing memo].
As our company continues to grow … [evidence or reason to support your opening paragraph].
Please let me know if you have any questions. In the meantime, I'd appreciate your cooperation as [official business information] takes place.

Requirements: 2 pages, APA formatting, 2 reference sources, Reference list must appear at the bottom of the memo in good form. Each reference list item must be cited in good form.

Other (Not Listed) Sample Content Preview:

Time Value of Money
Author’s Name
Institution of Affiliation
Course Name
Instructor’s Name
Date
MEMORANDUM
TO: My Coworker
FROM:
DATE:
SUBJECT: Time Value of Money
I am writing this memo to help you understand the time value of money (TVM). As our company desires to make investments, considering time is also essential. What would be your answer if somebody asked if you would like to be given $100 now or the same amount after two years? Generally, you would like to be given the amount now instead of in the future. However, what do you think makes today's money more valuable? TVM should help you understand the difference between today's and future money.
TVM is the financial concept asserting that the present money value is more valuable than the future value. This assertion is because money has the possibility in the future to earn. Therefore, the amount at hand is more than the same of money received after some years. This concept emphasizes pinpointing the cash flow value projected in coming years because of the business or personal investments made over time (Vaidya, 2022). For instance, depositing money in a saving account earns you interest which is added to the principal, thus earning more interest. However, the value of the money diminishes with time if a business fails to invest it. To calculate TVM, you should consider various fundamentals: present value of money (PV), the future value of money (FV), amount of compounding periods per annum (n), interest rate (i), and the number of years (t). Using these variables is the formula to determine the TVM in the next few years (Fernando, 2023). This formula is handy when determining an investment's value in the coming years.
TVM is an essential fundamental concept that can help you in the management to make decisions. Firstly, it ca...
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