Time Value of Money
|Term||Time Value of Money|
Time Value of Money means that the same (nominal) amount of money received at different points in time has different value.
SESAR Project ID 16.06.06 D26-01 (October, 2014) - ATM CBA for Beginners
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 2015.2