If Inflation and the interest rate were both zero, would there still be a time value of money? Stated another way, if interest rates (and other investments) and inflation were both 0%, would you be indifferent between your boss paying you at the end of the week, or in 20 years? I believe that all of you would rather receive the same dollars earlier rather than later, so, any other suggestions on WHY there is a time value of money

If Inflation and the interest rate were both zero, would there still be a time value of money? Stated another way, if interest rates (and other investments) and inflation were both 0%, would you be indifferent between your boss paying you at the end of the week, or in 20 years? I believe that all of you would rather receive the same dollars earlier rather than later, so, any other suggestions on WHY there is a time value of money

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 34P

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If Inflation and the interest rate were both zero, would there still be a time value of money?

Stated another way, if interest rates (and other investments) and inflation were both 0%, would you be indifferent between your boss paying you at the end of the week, or in 20 years?
I believe that all of you would rather receive the same dollars earlier rather than later, so, any other suggestions on WHY there is a time value of money?

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