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Finance 1. In finance, Time Value of Money is a foundational theory that enables us to compare events that occur at different times. Explain Time Value of Money. 2. You have saved $40,000 in cash and are currently considering buying a car that costs $40,000. The manufacturer is offering 5 year 0% interest. Use the concept of time value of money to explain why you may want to finance the car even though you have the money available to make the purchase from your own funds