The concept of the time value of money:

The concept of the time value of money:
A . recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.
B . is used for making short term decisions.
C . determines the higher interest rates that must be paid on longer term loans.
D . recognises the fact that earlier cash flows are worth more because they can be reinvested.

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Answer: A