Time Value of Money: (250 Words)

 

Activity Context

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

  • 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.

Post a substantive initial post by Thursday. Support your post as appropriate with the theories presented in this week’s required reading.

Response Guidelines

Respond to at least two peers by the Sunday due date. Your responses should be substantive and could involve one or more of the following:

  • Debate the topic.
  • Ask a probing question.
  • Share an insight you gained from your peer’s post.
  • Make a suggestion.
  • Share a personal experience related to the topic.
  • Expand on your peer’s post.