1. Disadvantage; it does not take time value of money into account.

2. This concept of discounting future money is commonly known as the time value of money.

3. The discount rate reflects the time value of money but not the actuarial or investment risk.

4. Investments generate returns to the investor to compensate the investor for the time value of money.

5. All cost and benefit estimates are adjusted for inflation and discounted to account for the time-value of money.

6. The rate of return calculation takes the "time value of money" into account by discounting future amounts at the internal rate of return.

7. NPV is a central tool in discounted cash flow (DCF) analysis and is a standard method for using the time value of money to appraise long-term projects.

8. Well, actually the time value of money is such that if I were to put that same amount in my own fund in 23 years'time, I'd have in excess of $ 3 million.