Time Value of Money

Has Calculator

What it means

A dollar today is worth more than a dollar tomorrow because it can earn interest.

Why it matters

Foundation of every valuation, capital budgeting, and financing decision.

How to calculate — with Cawan's Shoes

FV = PV × (1+r)^n. PV = FV / (1+r)^n. Cawan's has $1M today at 8% for 5 yrs → FV $1.47M.

What's at stake if you ignore this

Skip TVM and you'll overpay for slow-return projects.