question archive When payments are expected to be made over a period longer than one year, the present value of the cash borrowed must be used to determine the total value of the obligation
When payments are expected to be made over a period longer than one year, the present value of the cash borrowed must be used to determine the total value of the obligation
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When payments are expected to be made over a period longer than one year, the present value of the cash borrowed must be used to determine the total value of the obligation. True False
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The amount of money today has more worth than the same amount of money in the future.
Or we can say that the money that will be received in the future is not worth as the same amount today.
That's why there is a need to calculate the present value of the amount which is supposed to receive in the future on the basis of the inflation rate or interest rate.
given statement is : true.
