Why PV and FV are Important
For this assignment, please answer the following questions:
- Explain the concept of Future Value (FV) in your own words. Why is FV an important topic in money management?
- Why would you want to take $1000 today instead of waiting for a year?
- What is an opportunity cost within the concept of investing? Why would healthcare organizations need to keep this in mind?
- Explain the concept of Present Value (PV) in your own words. Why is PV an important topic in money management?
- What happens to the present value factor as the discount rate or the interest rate increases or decreases for a given time period? You may want to try this on a calculator to check your answer.
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