2: TVM is very helpful in investment and financing decisions, also choice between financing options and decisions about particular projects or investments. For instance, when one has a choice between taking a payment today and taking later, knowing the present value of future cash flows tells you which option is better financially.2: TVM is very helpful in investment and financing decisions, also choice between financing options and decisions about particular projects or investments. For instance, when one has a choice between taking a payment today and taking later, knowing the present value of future cash flows tells you which option is better financially.

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