Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Time Value of a Dollar - Essay Example

Comments (0) Cite this document
Name Instructor Task Date Time Value of a Dollar Time value of money is a theory that suggests that a dollar is worth more now than at a future date. That is, a dollar at hand is worth more than a reliable promise to receive another in the future. This concept is widely used to calculate the value of payments anticipated in future, for example, retirement savings, college funds, mortgages, loans…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.3% of users find it useful
Time Value of a Dollar
Read TextPreview

Extract of sample "Time Value of a Dollar"

Download file to see previous pages Critics are already arguing that the dollar can no longer be the reserve currency especially after the collapse of the U.S mortgage market, which set off the most awful global recession recently. There are a couple of reasons people prefer the present value of a dollar. If they can invest the money to earn interest over a period of time that is greater than a future payment, they will invest it in the present. Inflation is also a key factor in time value evaluations since it reduces the spending power of a dollar. Inflation is the persistent increase of prices and a dollar today may buy less quantities of a similar commodity in the future. Taking this into consideration one would rather invest now in a project that would earn them continuous cash flows rather than save that money to use it at a future date. Another reason is the default risk, which is the threat of not receiving the promised dollar in future. To understand time value of money we define the terms Net Present value, Future present value and present value. The net present value is the value of future streams of cash flows into the cash at hand in the present date. The future value is the value of the money an individual has now at a later day. ...
Different scholars explain that there is need to create strong fundamentals of the U.S economy, build investor confidence and diversify out of the dollar in order to protect it from depreciating with time. The U.S economy has weak fundamentals such as huge national debt, high unemployment rates, and international military operations. In a highly publicized vote the senate recently raised the debt ceiling to $14.3 trillion to avoid defaulting debt obligations which would be a catastrophe by itself. This could create a debt driven crisis that could strain standards of living by being detrimental to economic growth, dampen wages and restrict the government from investing or providing a safety net. It is necessary that the debt ceiling is not exceeded so as to prevent this debt driven crisis as it would accelerate the depreciation of the dollar. Military expenses are not productive and are a nonmonetary reason for inflation, an opinion that most economists share. There is the need to show creditors that the government is serious about stabilizing federal debt. Spending cuts are necessary to protect against the decreased value of money in future. Building investor confidence is a key to protecting the future value of money, and the government must ensure that it restores investor confidence for most believe that printing excess money for bailouts and stimuli will eventually weaken the dollar (Steverman). Asset prices should be watched carefully so that they remain in line with their underlying values and also do all it can to ensure economic growth. So far, the low dollar policy has helped as it has ensured that exports remain higher than imports. And if this keeps up there is hope that in the future the value of the dollar will be ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Time Value of a Dollar Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Time Value of a Dollar Essay Example | Topics and Well Written Essays - 750 words. Retrieved from
(Time Value of a Dollar Essay Example | Topics and Well Written Essays - 750 Words)
Time Value of a Dollar Essay Example | Topics and Well Written Essays - 750 Words.
“Time Value of a Dollar Essay Example | Topics and Well Written Essays - 750 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Time Value of a Dollar

African-American Dance Has Evolved Throughout Time

For example, Elida Webb created a famous dance, still used today, called the Charleston. In fact, many African-American dances are still around today or has influenced dances and dance steps today. Many great African-American dancers have started dance studios to keep African-American dance alive such as Alvin Ailey, Pearl Primus and Bill Robinson.

March 13th is the date devoted to African-American Dance. Africans introduced their dances to North and South America and the Caribbean Islands as slave labor beginning in the 1500s. The dance methods of tons of African cultural crowd combined with European dances, figuring the expansion of the African visual in the Americas. Dance has always been an essential piece of everyd...
7 Pages(1750 words)Essay

The Time Machine by George Wells

... H.G. Wells’ Time Machine Considered his first major breakthrough in writing science fiction, H.G. Wells’ The Time Machine was first published in a number of periodicals before finally appearing in the form known today in 1895 (Asimov, 1968). The story introduces its main character, known only as the Time Traveler, as an eccentric inventor and trickster, who finds himself in possession, through careful study and application of theory, of a time machine that allows him to travel back and forth along the fourth dimension he calls duration in much the same way as one might travel through space. Much of the story he tells regarding his first experimental trip to the future centers around the future inhabitants of the earth, whom he calls...
7 Pages(1750 words)Coursework

To What Extent Can HRM Add Value to an Organization

The human resource management supports the companies in devising a comprehensive strategic plan by setting specific goals and focusing on their resources, strengths, weaknesses, opportunities, and threats. It is on the basis of these plans the management recruits, hires, trains and motivates the members of the staff in order to work on the same lines as described by the management. Management is, scholars opine, far more imperative in comparison with marketing, finance, advertising, and sales, because it has a direct connection with the personnel responsible for the good name and fame of an organization. The Human Resources Management function includes a variety of activities, and key among them is deciding what staffing needs you...
8 Pages(2000 words)Term Paper

HR Model That Can Measure if It Adds Value

There has been a change of approach in the way that labor is reviewed in the organization and the modern perception emphasizes viewing labor as an investment and not as a commodity or resources. In this regard, labors have started to be seen as a made of creative and innovative social being who is able to give the organization a competitive edge. (Michael 2006, p. 42)
The term human resource has been changing to broader management and the concept of human capital has been applied more often in place of human resources. Therefore the modern perception of human labor has been changing the way organization have been handling their human capital to a more liberalized way. It has been realized that having a competitive workforce c...
13 Pages(3250 words)Assignment

Economic Value Added as Tool for Improving Performances

To discover whether pure profits exist, take the revenue of the firm and deduct the costs of all factors of production other than capital. Then deduct the pure return on capital and any risk premium necessary to compensate the owners of capital for risks associated with its use. Anything that remains is pure profits.” Simply in economic terminology economic value added (EVA) is commercial profits reduced by opportunity costs (that is the pure return on riskless investment and the risk premium). Lipsey calls the EVA defined in this fashion as “pure profits, economic profits or, where there is no room for ambiguity, just profits”.

Investors in any company are interested in real profits that are profits r...
7 Pages(1750 words)Report

Cultural Value Orientations: German vs. Turkish

When organizational culture is discussed in the context of national culture, it is based on certain assumptions. According to Schein (2004 qt. Browaeys and Price 2008) culture can be defined as:

"...a set of basic assumptions - shared solutions to universal problems of external adaptation (how to survive) and internal integration (how to stay together) - which have evolved over time and are handed down from one generation to the next".

External adaptation here refers to factors or culture which the management can control while internal integration means the relationship which binds them to the group. In this context management styles and approaches are often influenced by the cultural value orientation - that...
7 Pages(1750 words)Case Study

Public Footpaths Value

... that grown out there. In general, the two footpaths were closed because they were not in use and were turned into private farms. Conclusion Public footpaths have important value from economic, tourism and transport point of view. The estimates made by Wales Tourist Board have shown that “the annual economic value of the path network” is $ 548 million (Jenner, 2003, p.54). This revelation also points to the possibility of meeting the maintenance cost of the public footpaths from this revenue alone, if it is properly tapped. Almost eighty percent of the footpath in the area of study (Landyfaelog village) was not maintained and was obstructed by trees, bulb wires and bushy plants. These footpaths were not been in used for years... Walking...
7 Pages(1750 words)Coursework

Policies of Anwar Sadat during His Time in Office

... Anwar Sadat The objective of this paper is to critically analyze the leadership of the third president of Egypt, Anwar El Sadat during his time in office from 15th October 1970 till his assassination on 6th October 1980. The paper will assess the significant events that took place during his time in office and how Sadat’s reaction and resolution for the said events shaped his tenure, consequently, concluding whether Anwar El Sadat’s leadership can be termed as a successful one or not. Born on 25 December, 1918 in a village located in Egypt’s Monufia Governorate to an Egyptian father who worked as a clerk in an army hospital and a Sudanese mother, Alagna notes that Anwar El Sadat was greatly intrigued by historical stories of nationalist...
9 Pages(2250 words)Term Paper

The Time Is Ripe for Reconceive Language Education

Language education is defined by Gao (2010:13) as the teaching and learning of a foreign or a second language. Increased globalization has increased the need for people to communicate in multiple languages, especially in education and religion. The European Union has placed the goal of requiring all the students to learn two non-native languages.
Language education needs to be culturally and linguistically responsive to the various needs of the students. This type of education needs to foster the principle of ‘reading first, no student left behind.’ In order for teachers to effectively teach a linguistically diverse classroom, they need to meet the needs of every each student individually and successfully, as well...
9 Pages(2250 words)Assignment

Genre Conventions as They Change over Time

...History of a Genre: Analyzing Genre Conventions as they Change over Time History of a Genre: Analyzing Genre Conventions as they Change over Time Genre can be defined as a group of artistic composition, for example, literature or music that has similar features. The similar features can be in the form of style, subject matter or form. Genres can be defined by tone, length, content or the literary technique that is used. This paper will focus on the news article genres to analyze the water crisis in California (2014) and Sydney (1998). News articles are a piece of writing published in internet or print and include newspapers, news magazines and newsletters. Other examples include the websites (news- oriented) and article directories...
7 Pages(1750 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Time Value of a Dollar for FREE!

Contact Us