CIMA BA2 Question Answer
The concept of the time value of money:
recognises the fact that a cash flow received today will always be worth more than a larger cash flow received in the future.
is used for making short term decisions.
determines the higher interest rates that must be paid on longer term loans.
recognises the fact that earlier cash flows are worth more because they can be reinvested.
TESTED 08 Jan 2026
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