Can you help me understand this Business question?
If a company wishes to purchase new equipment, it must have capital. But, before making any purchase, the financial manager needs to decide if the benefits of the new equipment outweigh the present and future benefits of the capital. For this discussion, address the following:
- Summarize the concept of time value as it relates to money.
- Explain how managers estimate the future benefits of capital.
- Analyze how the time value of money impacts capital investment decisions.
Fahrat’s Accounting Lectures. (2016, February 22). Time value of money | Intermediate accounting | CPA exam FAR | Chp 6 p 1 (Links to an external site.) [Video file].
https://youtu.be/VzHBV8nLVCY
Finance & Accounting Videos by Prof Coram. (2017, April 21). Time value of money basics and present and future value using tables (Links to an external site.) [Video file].
https://youtu.be/3fa3XY4TQk4
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