If current sales are 1,500 units then the margin of safety in units will be 300 units.
A built-in cushion called a margin of safety enables some losses to be suffered without having a significant negative impact. To identify a price objective and a safety margin that discounts that target in investing, the margin of safety combines quantitative and qualitative factors.
The difference between anticipated sales and the breakeven point in units is known as the margin of safety.
Calculate the breakeven in units by Fixed costs / Contribution margin per unit. In this case,
= $48,000 / ($100 - $60) = 1,200 units.
Then take current sales of 1,500 - 1,200 units for breakeven = 300 units margin of safety.
Therefore, the margin of safety in units will be 300 units.
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suppose a market is in equilibrium. if a price ceiling is set by the government below the equilibrium price, which of the following is most likely to occur? group of answer choices a new equilibrium a shortage a surplus a decline in quantity demanded an increase in the quantity being sold
A price ceiling is a government limit set on the maximum price a product or service can be sold at.
If a price ceiling is set below the equilibrium price, it will lead to a shortage of the good. The demand for the good will increase as buyers will be able to purchase the good at a lower price. However, the supply of the good will not increase as the price is below the equilibrium price and suppliers will not be able to sell the good at a profit. This will cause a shortage in the market as the quantity of the good demanded exceeds the quantity of the good supplied. This will lead to an increase in the price of the good as buyers compete for the limited supply of the good. As the price increases, the quantity of the good being sold will decline as the price is no longer below the equilibrium price. Ultimately, the market will reach a new equilibrium with a higher price and a lower quantity.
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Igor works as a technician for a large manufacturer of biomedical equipment. He has discovered a way to produce disposable products in large quantities that will be useful in research facilities. His employer has given igor and a selected team of researchers the resources to develop this idea. This project is referred to as
This project is called Bootlegging. Smuggling, the illegal trade of liquor in violation of legal restrictions on its manufacturer, sale, or transportation in the history of the United States.
Bootlegging is the unauthorized sale, duplication, or distribution of a product. In computer science, the term bootleg is synonymous with piracy, or the unauthorized copying or distribution of software for resale or personal reproduction. In the music industry, piracy refers specifically to the unauthorized recording, copying, trading, or distribution of live music. Pirated software includes copied software that is installed on multiple computers, even if the software license prohibits it. Trafficking harms the software industry and organizations that knowingly or unknowingly purchase illegal software.
With the expansion of digital and cloud computing, pirated software has become a common problem in the United States and around the world. Cross-industry trafficking carries heavy fines and imprisonment.
Bootleg is a good way to describe something that has been stolen, smuggled, or pirated. It can also be used as a verb when selling illegal or secretly obtained items, such as secret tapes from rock concerts or candy smuggled in at summer camps.
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what the name of a report of credit card sales produced by a point-of-sale terminal?
A point-of-sale terminal's "batch report" is a record of credit card sales.
A point-of-sale (POS) terminal is a piece of hardware that accepts card payments in retail settings. For reading the magnetic stripes on credit and debit cards, hardware comes with built-in software. The next generation of point-of-sale (POS) systems will utilise proprietary or third-party portable (as opposed to counter-anchored) contactless devices. Point-of-sale terminals can be used by retail enterprises to accept card payments rather than updating their cash registers to directly scan cards. Point-of-sale terminals are a hardware and software hybrid.
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producing output involves group of answer choices communicating information to the outside world performing graphical processing communication with another computer none of these answers
D. None of these answers. Producing output does not necessarily involve any of the options listed in the group of answer choices.
Output production refers to the creation of a result or product from a process or system. It can involve various steps such as collecting data, processing information, and generating a final result in the form of a report, graph, or other format. The specific steps involved in producing output will depend on the context and what is being produced. For example, if producing output involves generating a report, this may involve collecting data, analyzing the data, and presenting the results in a clear and concise format. So, none of the answer choices listed accurately describe what is involved in producing output.
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at the beginning of the year, addison company's assets are $296,000 and its equity is $222,000. during the year, assets increase $80,000 and liabilities increase $59,000. what is the equity at year-end?
Addison Company's assets are $296,000, and its equity is $222,000 at the start of the year. Assets climbed by $80,000 throughout the year, but liabilities increased by $59,000.
The following is the equation for computing equity at the end of the year: Equity equals assets minus liabilities. Because we know the assets rose by $80,000, the new assets at the end of the year would be $296,000 + $80,000 = $376,000. Similarly, the liabilities climbed by $59,000, resulting in $59,000 in additional liabilities at the end of the year. We may compute the equity at the end of the year using the aforementioned equation: $376,000 - $59,000 = $317,000 in equity So, at the end of the year, the equity is $317,000.
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which of the following does money management not involve? a a series of decisions b a long-term time period c cash inflows d cash outflows
The concept is Money management, which is the process of handling all the finances from start to very end. The answer is option B, a long-term time period.
Money management refers to how you manage all of your finances, from budgeting and investing to saving and setting goals. This is important because it helps:
Knowing how to plan a budgetspending and savings can help you achieve your financial goals,become debt free eaccumulate your savings.Once you start managing your finances, you'll have a better idea of where and how you spend your money. This can help you stay on budget and even increase your savings.
With good personal finance management, you will also learn how to control your money to achieve your financial goals. Its goals include:
Ensure that the company has a regular and sufficient supply of funds. Ensuring a reasonable return for shareholders depends on profitability, the market price of the shares, and the expectations of shareholders.Ensure optimal use of funds.To know more about Money management,
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suppose you need $10,000 in one year for the down payment on a new car. if you can earn 7% annually, how much do you need to invest today? a.
You would need to invest $9,342.55 today to have $10,000 in one year.
To calculate the amount needed to be invested today to reach a goal of $10,000 in one year, you can use the formula for future value:FV = PV * (1 + r)^t
where:
FV = future value (the amount you want to have in one year)
PV = present value (the amount you need to invest today)
r = annual interest rate (7%)
t = time in years (1 year)
Solving for PV, we get:
PV = FV / (1 + r)^t
PV = $10,000 / (1 + 0.07)^1
PV = $9,342.55
So, you would need to invest $9,342.55 today to have $10,000 in one year.
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when the economy is at the recovery stage, both the output gap and growth rate are positive? true/ false? please explain.
False. While GDP growth rate is positive when there is a recession, the output gap is still negative during the recovery stage.
How close current output is to an economy's long-term potential output is one aspect of these ups and downs, sometimes known as the business cycle, that worries economists and policymakers. In other words, people care if GDP is increasing or decreasing as well as whether it is at or below its potential.
The production gap can move in either a positive or negative direction, similar to how GDP can increase or decrease. Both are not ideal. When actual output exceeds output at full capacity, there is a positive output gap. This occurs when demand is extremely strong and factories and employees are working much harder than they should be to meet the demand. When actual output is lower than what an economy could create at maximum capacity, there is a negative output gap. A negative gap indicates that the economy has slack or spare capacity as a result of low demand.
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if this monopolist is regulated by marginal cost pricing (i.e., the socially optimal price), what will be the level of
If the monopolist is regulated by marginal cost pricing, the level of output will be the level where the marginal cost is equal to the price. This is also the socially optimal level of output, as the price and marginal cost curves intersect.
The price charged will be equal to the marginal cost, which will be lower than the price the monopolist would charge in the absence of regulation.
When a monopolist is regulated by marginal cost pricing, the output level produced is optimal from a social perspective. This is because the price charged is equal to the marginal cost, which is the marginal cost of producing an additional unit of output. Since the marginal cost of production is lower than the price the monopolist would charge in the absence of regulation, the price charged is lower than the monopoly price and is closer to the competitive market price.
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hat is the primary reason why coffee shops are flocking to china? multiple choice financial capital is easier to obtain. labor costs are lower.
The primary reason why coffee shops are flocking to China is because labor costs are lower.
This means that it's cheaper for these coffee shops to operate in China compared to other countries, which can be an seductive factor for businesses looking to expand their operations. Lower labor costs can affect in lower operating charges and advanced profit perimeters for the coffee shops.
Also, China is also a large and growing request, which can give ample occasion for coffee shops to valve into and increase their client base. still, it's important to note that there may be other factors that impact a business's decision to expand into a new request, similar as access to fiscal capital, favorable regulations, and a probative business terrain.
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silas 4-wheeler, inc. has an roe of 18.06 percent, equity multiplier of 1.40, and a profit margin of 15.00 percent. what is the total asset turnover and the capital intensity?
1.67 is the total asset turnover and the capital intensity. ROA = Margin X asset turns X equity multiplier
What is capital intensity?The ratio of fixed expenses to variable costs, which is a measure of operating leverage, is frequently high in capital-intensive businesses.
As a result, in order to generate a sufficient return on investment, capital-intensive enterprises require a high level of production. This implies that slight variations in sales can result in significant variations in earnings and return on investment.
The fact that capital-intensive firms still have to pay fixed costs, such as overhead on the factories that house the equipment and depreciation on the equipment, renders them considerably more susceptible to economic slowdowns than labor-intensive businesses.
Even when the industry is experiencing a downturn, these costs must be covered.
ROA = Margin X asset turns X equity multiplier
18.1% = 18.25% X ?? Asset Turns ?? X 1.6
18.1% = 29.20% X Asset Turn
.60 = Asset Turns
It is either .60 or the reciprocal 1.67.
Look up the definition. I’ll wait a few minutes.
It is the reciprocal, so it’s 1.67.
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in the united states, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. in the united kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. the united kingdom will gain the most from trade (and trade will be feasible) if 1 ton of steel trades for:
chemicals. Trade is the voluntary exchange of goods or services between economic actors. Trade is often seen to be beneficial to both parties because interactions are voluntary.
The purchasing and selling of securities or other assets are referred to as trading in finance. The act of exchanging goods or services between people, companies, or countries is referred to as a trade.
In every aspect of foreign trade, the negotiations for a new trade agreement fell squarely under the purview of the ministry. Texas and Mexico have had a long history of trade. The trade may have more precise connotations in some situations.
The buying and selling of assets, commodities, and securities are all examples of trade in the financial markets. Cross-border asset transfers are referred to as free commerce. and services that are unrestricted by trade barriers like tariffs.
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United States Versus United Kingdom
In the United States, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. In the United Kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day.
Reference: Ref 2-11
__(Scenario: United States Versus United Kingdom) The United Kingdom has a comparative advantage in the production of:
chemicals.
steel.
The United Kingdom has a comparative advantage in both steel and chemicals.
The United Kingdom has a comparative advantage in neither steel nor chemicals
organizations that have few projects as part of their normal business operations would generally be fine using which type of project management structure?
A dedicated project team works on an as-needed basis under the less formal project management structure.
Define managing a project?The hierarchy and authority of those working in a given project are established using an organisational structure for project management. For team members to refer to while working on a project, the structure specifies the roles of each team member and their reporting lines on a chart.
What is the ideal framework for project management?The matrix organisational structure is advised because it gives the staff or employees two organisers or leaders to whom they can submit. For a project manager who lacks the full potential for effective team management, this form of organisational structure works well.
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a successful marketing strategy pairs multiple choice question. the competition ideas and customer needs. company goals with employee strengths. opportunities with a company's resources and goals. financial goals with company strengths.
A successful marketing strategy pairs company goals with employee strengths. Content marketing is the winner when it comes to small company marketing strategies overall effectiveness. Blogs, videos, social media posts, podcasts, webinars, and other forms of information.
Distribution are all included in the content marketing umbrella. A successful strategic plan offers the knowledge and direction the management team needs to govern the firm more effectively and enable it to realise its full potential. Managers can make decisions that are more grounded in reason and the future by using strategic planning. A marketing strategy is a long-term plan for attaining a business' objectives through an understanding of client needs.
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what type of pricing is being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency?
The type of pricing being used when a company temporarily prices its product below the list price or even below cost to create buying excitement and urgency is called "loss leader pricing."
Loss leader pricing is a pricing technique in which a business briefly reduces the price of a product below the list price or even below cost in an effort to pique customer interest and urgency in purchasing the goods. The objective is to get visitors to the business's store or online where they may then buy additional, more expensive items by offering a product at a significant discount.
This tactic can work well for boosting sales and market share, but it needs careful management and preparation. Companies need to be mindful of the possible repercussions of selling things below cost, such as decreasing profit margins, diminished brand value, or less consumer loyalty. The business must also have a strategy in place to make up for the lost income, such growing sales.
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Assume that bahamas and norway each has 6 days available for production. Originally, each country divided its time equally between the production of coolers and radios. Now, each country spends all its time producing the good in which it has a comparative advantage. As a result, the total output of coolers increased by
An economy has a comparative advantage if it can produce a specific good or service at a lower opportunity cost than its trading counterparts. In order to understand why businesses, nations, or people can profit from trade, comparative advantage is used.
Comparative advantage, when used to describe international trade, refers to the goods that a country can produce more easily or more affordably than other nations. While this typically demonstrates the advantages of trade, some modern economists also recognise that focusing solely on comparative advantages can lead to resource exploitation and depletion in a nation.
The law of comparative advantage is often credited to English political economist David Ricardo and his work On the Principles of Political Economics and Taxes, which was published in 1817, while it is possible that Ricardo's mentor.
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always based on a precious metal like gold or silver. the total collection of pieces of property that are a store of value. a flow of earnings per unit of time. anything that is generally accepted in payment for goods and services or in the repayment of debt.
Money is anything that is generally accepted in payment for goods and services or in the repayment of debt.
In a certain nation or socioeconomic setting, money is any tangible object or verifiable record that is commonly accepted as payment for products and services as well as debt repayment such as taxes. The main characteristics that set money apart are its use as a medium of commerce, an unit of exchange, a store of value, and occasionally as a benchmark for delayed payment. Depending on the definition being used, the supply of money of a nation also includes one or more different types of physical cash. Bank money makes up by far the majority of broad money in industrialized countries. Bank money's worth is recorded on the accounts of financial organizations and can be transformed into real notes or used in cashless transactions.
This question is incomplete. complete question is:
MONEY IS:
always based on a precious metal like gold or silver. the total collection of pieces of property that are a store of value. a flow of earnings per unit of time. anything that is generally accepted in payment for goods and services or in the repayment of debt.Learn more about money here
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What does it mean when your package has an exception?
If you have a delivery exception, it signifies that unavoidable circumstances have caused a temporary delay in the delivery of your goods.
If there is a delivery exception, it doesn't necessarily mean that your cargo will be delayed because we strive to deliver every box as quickly as possible. Online customers in our society are accustomed to receiving their orders when they are ready. People are not particularly happy when an order is erroneous or when the delivery is delayed. Perhaps you have already before checked the status of your tracking and saw that it was labelled as an exception with a delayed delivery date. While shipping companies will make every effort to guarantee that products are delivered by the specified dates, there are many circumstances in which this is not always possible.
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which of the following are included in the 10 leading economic indicators? i standard and poor's 500 index ii supplier delivery delays iii consumer price index iv initial unemployment claims a i only b ii and iii c i, ii, iv d ii, iii, iv
The 10 leading economic indicators include the Standard and Poor's 500 Index, Supplier Delivery Delays , and Initial Unemployment Claims . So , option C is correct.
These indicators are used to help predict future economic activity and provide a picture of the current state of the economy. The Standard and Poor's 500 Index is a measure of the performance of 500 large companies and is considered a leading indicator of stock market activity.
Supplier delivery delays measure how quickly suppliers are delivering goods, which can be an indicator of future economic activity. The Consumer Price Index measures the average change in prices over time for a basket of goods and services, and is a measure of inflation.
Initial unemployment claims measure the number of people who filed for unemployment benefits for the first time in a given week, and are considered a leading indicator of the labor market.
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aper used in the magazines b. wages of printing machine employees c. maintenance on printing machines d. glue used to bind the magazines
a. Staple used in the magazines refers to Direct Materials
b. Wages of printing machine employees signifies to Direct Labor
c. Maintenance on printing machines refers to Factory Overhead
d. Glue used to bind the magazines indicates Direct Materials
Brief Explanation is given Below:a. Staple used in the magazines - Direct Materials: Direct materials are raw materials that are directly used in the production of a product and can be easily traced to the final product. Staple used in magazines is considered a direct material as it is a part of the magazine and directly contributes to its production.
b. Wages of printing machine employees - Direct Labor: Direct labor is the cost of labor that is directly involved in producing a product. Wages of printing machine employees, who operate the machines to print the magazines, are considered direct labor costs as they are directly involved in the production process.
c. Maintenance on printing machines - Factory Overhead: Factory overhead is indirect production costs that cannot be traced to a specific product. Maintenance on printing machines is considered a factory overhead cost as it is required to keep the machines running, but cannot be traced directly to the production of a specific magazine.
d. Glue used to bind the magazines - Direct Materials: Direct materials are raw materials that are directly used in the production of a product and can be easily traced to the final product. Glue used to bind the magazines is considered a direct material as it is directly used in the production of the final product, the magazine.
"
Complete question
Identify The Following Costs As Direct Materials, Direct Labor, Or Factory Overhead For A Magazine Publisher:
a. Stapel used in the magazines
b. wages of printing machine employees
c. maintenance on printing machines
d. glue used to bind the magazines
"
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with respect to the roles in the family decision-making process, all the members of a family who use a car are referred to as the
In a family decision-making process, all the members who use a car are referred to as the stakeholders.
The stakeholders are the people who have a vested interest in the decision-making process, as the outcome of the decision will directly affect them. The stakeholders in the family decision-making process related to a car may include the parents, the children, and any other family members who use the car. Each stakeholder should be given an equal chance to express their opinion and make their own contribution to the decision-making process. This ensures that the family can come to a consensus and make the best decision possible. Additionally, each stakeholder should be aware of the consequences of their decision. This will help to ensure that the decision is made with the best interest of the family in mind.
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what are the 2 most important abiotic factors in determining the productivity, or amount of life in different areas of the ocean? choose 2:
The two most important abiotic factors in determining the productivity or amount of life in various ocean areas are the availability of light and nutrients. these two factors are very important in determining the productivity of life in the ocean area.
Abiotic factors are external factors that affect the process of growth and development of a plant. Abiotic environmental factors include light intensity, temperature, humidity, soil acidity, gas composition in the soil and the availability of nutrients in the soil. The characteristics of the abiotic component include not breathing, not sensitive to stimuli, not requiring food or nutrition, not growing and developing, and not multiplying or reproducing.
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under pressure from nutrition activists, the government decides to tax sugar producers with a $5 tax per 100 pound bag. using the graph, draw the new supply curve. after the tax is enacted, what price will bring forth quantities of 10,000? 15,000? 20,000?
Under pressure from nutrition activists, the government decides to tax sugar producers with a $5 excise tax per 100-pound bag. After the tax is enacted, $5 will bring forth a quantity of 10,000.
There will be a $5 increase in the new supply curve over the old one. The relationship between the price of an item or service and the volume supplied over a specific time period is represented graphically by the supply curve. The price will always be shown on the left vertical axis of an example, and the quantity given will be shown on the horizontal axis. On most supply curves, as an item's price rises, so does the amount of that good supplied.
Supply curves may frequently and many predict whether demand will cause a commodity's price to rise or fall, and vice versa.
For products whose supply is more elastic, the supply curve is shallower (closer to the horizontal), whereas for those whose supply is less elastic, the curve is steeper (closer to the vertical).
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how does an auditor make the following representations when issuing the standard auditor's report on comparative financial statements? examination of evidence consistent application of accounting principles
An auditor makes the representation of having performed an examination of evidence when issuing a standard auditor's report on comparative financial statements.
By conducting various audit procedures that provide sufficient and appropriate evidence to support the conclusions reached in the financial statements. This evidence can come in the form of physical examination of inventory, confirmation of accounts receivable with customers, review of journal entries, and other auditing procedures. Regarding the representation of a consistent application of accounting principles, the auditor must obtain an understanding of the company's accounting policies and procedures and assess whether they have been consistently applied from one period to the next. The auditor must also consider whether the accounting principles used are in accordance with generally accepted accounting principles (GAAP) and if any departures from GAAP are appropriately disclosed in the financial statements. Overall, the auditor's objective is to provide a reasonable level of assurance that the financial statements are free of material misstatement, whether caused by fraud or error. The representations made in the auditor's report provide assurance to the reader that the auditor has performed the necessary procedures to form an opinion on the financial statements and that the information presented is reliable.
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refer to exhibit 4.1. what is the firm's current ratio? do not round your intermediate calculations. question 8 options: 1.46 1.65 1.58 1.38 1.72
the firm's current ratio Would be equal to option (c)38 without rounding it off to the immediate calculations.
A liquidity ratio known as the current ratio assesses a bank's capacity to settle short-term debts or those that are due within a year. It explains to investors and analysts how an organization can put its present assets to the highest possible extent to pay down its current obligations and other payables. In general, a desirable quick value is one that is close to the industry norm or just a little bit higher. The likelihood of trouble or default may be increased by a current ratio which is below the average in the industry. So it includes all current assets and current liabilities, unlike some other liquidity ratios, the cash flow is named current. The working capital ratio is yet another name for the current ratio.
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Which would be the best choice when purchasing a car?
A. one that might require above average maintenance
B. one that is priced to meet your budget
C. one that is sold "as is"
D. one that has more options than you will need
The best choice when purchasing a car will be going for one that is priced to meet your budget. The Option B is correct.
What is the most important factor when choosing a car?The cost of the vehicle is arguably the most important factor to consider when purchasing a car. Car prices can vary greatly, with some vehicles being well worth their asking price and others leaving something to be desired.
One may be looking for a used car, either as a trade-in or by purchasing one from a dealership, if we are not interested in buying a new one. Used car prices also vary greatly, and if you research well, you can find a fantastic vehicle for the best price possible.
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errors made when estimating the expected or actual performance of the project, resulting in an inaccurate picture of the project status, happen in the:
Option B. Errors made when estimating the expected or actual performance of the project, resulting in an inaccurate picture of the project status, happen during the control process.
The control process is a key aspect of project management and involves monitoring and comparing actual project performance with the planned performance, identifying any deviations, and taking corrective actions to ensure that the project stays on track. During the control process, the project manager uses various tools and techniques, such as performance reports, variance analysis, and earned value management, to measure and report on the project's performance.
If errors are made during the control process, it can result in an inaccurate picture of the project status. This can lead to poor decision-making, missed deadlines, and ultimately, project failure. Therefore, it is important for project managers to be vigilant in their control processes and take appropriate measures to minimize the risk of errors.
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Errors made when estimating the expecting or actual performance of the project, resulting in an inaccurate picture of the project status, happen during the:
A)planning process.
B)control process.
C)initiation process.
D)execution process.
anticipatory repudiation is not a breach that would allow the non-repudiating party to discharge itself from its obligation under a contract. group startstrue or falsetrue, unselectedfalse, unselected
The given statement "anticipatory repudiation is not a breach that would allow the non-repudiating party to discharge itself from its obligation under a contract." is false becuase anticipatory repudiation is a breach of contract that would allow the non-repudiating party to discharge itself from its obligation under the contract.
Anticipatory repudiation occurs when one party to a contract explicitly or implicitly communicates their intent to not perform their contractual obligations. This type of breach of contract gives the non-repudiating party the option to either enforce the contract or treat it as discharged, meaning that they are no longer bound by their own contractual obligations.
"
Complete question
Anticipatory repudiation is not a breach that would allow the non-repudiating party to discharge itself from its obligation under a contract.
True
False
"
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Which probability method requires that the probability experiment be performed and uses the results to estimate the probability of a particular outcome?
Option (a), The empirical (relative frequency) probability method uses the findings of a probability experiment to calculate the likelihood of a specific outcome.
Does empirical probability modeling incorporate frequency?
There is a strong correlation between an empirical probability—also known as an experimental probability—and the relative frequency of an event. The amount of a specific result in a sample set is the basis on which empirical probability evaluates the likelihood that it will occur again.
What does probability mean in terms of actual evidence or relative frequency?The percentage of outcomes in which a specific occurrence occurs in all trials—rather than only in a fictitious sample area—in a real experiment is known as the empirical probability, relative frequency, or experimental probability of an event.
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The complete question is:
Which probability method requires that the probability experiment be performed and uses the results to estimate the probability of a particular outcome?
Choose the correct answer below.
A. Empirical (relative frequency)
B. Classical
C. Subjective
D. All of the above
What is the present value of $11000 paid at the end of each of the next 101 years if the interest rate is 13% per year?
The value of a sum of money that will be received in the future in the present. Therefore, $1,000 today equals $1,100 after a year (at 10% interest).
If the proper interest rate is 10%, then $100 divided by 1.10, or $91, represents the present value of $100 spent or earned one year from now.
Is the value of money that will be paid or received in the future expressed in today's dollars or something else?The idea of present value holds that a sum of money is worth more today than it will be tomorrow. Or, to put it another way, money received in the future is not as valuable as money obtained today in an identical quantity. Getting $1,000 today is more valuable than getting $1,000 in five years.
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