Why would you want to take $1000 today instead of waiting for a year?

Why PV and FV are Important

For this assignment, please answer the following questions:

  1. Explain the concept of Future Value (FV) in your own words. Why is FV an important topic in money management?
  2. Why would you want to take $1000 today instead of waiting for a year?
  3. What is an opportunity cost within the concept of investing? Why would healthcare organizations need to keep this in mind?
  4. Explain the concept of Present Value (PV) in your own words. Why is PV an important topic in money management?
  5. 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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