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In general, accelerating cash inflows and decelerating cash outflows would maximize the time value of money.

a. True
b. False

User Valchev
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1 Answer

5 votes

Answer:

a. True

Step-by-step explanation:

In the case of the accelarating the cash flows, it permits the business to pay off the bills, and the other liabilities on time so that the company is eligible for taking some trade discount when the payment is made within the specified period as mentioned by suppliers

On the other hand, if the cash flows are decelerating that means the payment is not made within time so ultimately it give rise to the time value of money

Therefore the given statement is true

User Santhosh R
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3.1k points