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One managerial accounting question The time value of money is an important concept when planning capital budget expenditures because: If your investment will not be

One managerial accounting question
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The time value of money is an important concept when planning capital budget expenditures because: If your investment will not be recouped within a year or two it is probably a bad investment. A dollar today is worth less than a dollar in the future, so we need to spend wisely. It is important from a cash flow perspective to know how long it will take for the initial investment to come back to your company and at what interest rate

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