A time factor along with a discount factor/rate plays an important role in allocating resources - money, wealth, or capital resource - between present and future (that is, you determine whether you should hold money or wealth in the present or in the future) for both a household and a firm. Both households and firms may use a present-value analysis to compare the present value (PV) of money with its future value (FV). : Households/Consumers: Suppose you inherited $1,000,000 from your grandfather. You want to determine how to use this money. Appraise the time value of money (TVM) in the PV-FV analysis. Carefully evaluate the factors that you should consider in your financial decision making. How might other current economic factors such as the inflation rate, interest rates, and/or the stock/bond prices affect your decision? What would you do with the $1,000,000 that you inherited from your grandfather?