Financial management as a scientific direction is based on a number of fundamental concepts. A concept is a system of views, reflecting an understanding of phenomena and processes, i.e. with the help of the concept, a point of view is expressed on the essence and direction of development of the phenomenon or process under investigation
The concept of the time value of money[1]
The concept of changing the value of money over time plays a central role in the practice of financial computing and expresses the need to take into account the time factor in the implementation of long-term financial operations by evaluating and comparing the value of money at the beginning of project financing and returning them in the form of future cash receipts. The concept of the time value of money is that the value of money changes over time with the rate of profit on the financial market, which is usually the rate of loan interest. Thus, the euro received today is worth more than the euro that will be re...
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