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In order to ensure that business endeavors and projects are going to increase profits and the value of the organization, financial managers look at the time value of money. The time value of money is a tool to understand the effective rates on business loans or the true return on an investment by helping the manager determine the actual value of money now and in the future based on interest rates, discount rates, expected costs, and expected sales. Through targeted analysis, organizations are able to use this information to decide whether projects, big or small, simple or complex, are going to be beneficial to the company...
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