Time Value of Money
From EUROCONTROL ATM Lexicon
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Term | Time Value of Money |
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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