Time Value of Money

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Link Semantic Value
Term Time Value of Money
Status


Mandatory for


Contexts

SESAR

Categories
Synonyms


Related entries


Broader term


Narrower term


Abbreviation

TVM

Definition

Time Value of Money means that the same (nominal) amount of money received at different points in time has different value.

Definition Source

SESAR Project ID 16.06.06 D26-01 (October, 2014) - ATM CBA for Beginners

Note

An example: If a person receives EUR 100 today and invests it immediately, it will start to generate income immediately. If that person waits ten years before investing the EUR 100, he/she will lose ten years of income.

Thus, when talking about costs and benefits, two dimensions should always be specified: the amount of money as well as the point in time when a given money inflow or outflow occurs.

Lexicon Release

Lexicon Release 2015.2