Time value of money
Time value of money is the cost of having to wait for repayment.
Definitions
According to Principles of Economics by Timothy Taylor (3rd edition),
- Time value of money. The cost of having to wait for repayment.
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Time value of money. Takes into account that a dollar (or any other monetary unit) received today is worth more than a dollar received at any future time.