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1. Explain the Time Value of Money concept of, a dollar today is more valuable than a dollar tomorrow. (5 marks) 2. What does risk-return

1. Explain the Time Value of Money concept of, "a dollar today is more valuable than a dollar tomorrow." (5 marks)

2. What does risk-return tradeoff mean? Explain using one specific example. (5 marks)

3. Why are businesses interested in cash flows rather than accounting profits to determine the value of an asset or investment? (5 marks)

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