Final answer:
The relevance of the time value of money in project management lies in enabling better decision-making by discounting future revenue and costs, which is crucial for assessing long-term investments, governmental policies, and personal financial situations.
Step-by-step explanation:
project management:
The time value of money is highly relevant to project management because it allows managers to understand and balance the financial implications of their decisions. The correct answer to the given question is b. discounting the value of future revenue and cost streams enables better project decisions. By considering the present discounted value, project managers can make more informed decisions, effectively comparing the present costs to the anticipated benefits over time.
Within project management, this concept is instrumental when evaluating capital investments, determining project viability, or comparing different projects or options. Applications extend beyond finance, touching upon government decisions, like highway safety features, and environmental policies, such as carbon dioxide emissions, in addition to personal financial decisions like managing lottery winnings.