Time Value of Money

The Time Value of Money is the finance principle that a dollar today is worth more than a dollar in the future because today’s dollar can be invested to earn a return and because future cash flows are subject to risk. In valuation, Time Value of Money underpins discounting methods like DCF and IRR, and Time Value of Money assumptions (discount rates) can materially change deal pricing.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.