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Present Value Concept: How To Use It In Evaluating Investments?

ByMANI

What is the present value concept? Suppose a person invested Rs.1.0 crore in a real estate property. It will be a good investment if he gets back his invested amount, with some surplus (see this example). A simple example. Suppose, the investment (Rs.1.0 Crore) was made today. If the person gets back Rs.1.2 Crore after…

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The Concept of Time Value of Money. How it helps us to manage the cash flows wisely?

ByMANI

There is a concept of finance that says that there is a ‘time value of money.’ It is one of those concepts which works as a foundation of all money management. But before we can understand the time value of money, we must know who should care about it. Theoretically speaking, everyone is affected by this concept. But…