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sir can u explain difference between timing of cashflows and time value of money!
ik what time value of money is,its dicounting into pv but what is timing of cashflows is it same as time value of money?and if both mean the same y did they give this both has different disadvatges of payback
thank yu:)They are certainly not meaning the same!!
The time value of money is the interest that the company is having to pay on borrowed money.
The timing of cash flows is looking at when the cash flows occur (e.g. in 1 years time, in 2 years time, etc.) and therefore the amount of interest that will be incurred.Given that I am assuming you were exempted from taking Paper MA (was F2) then I suggest that you first watch my free Paper MA lectures on Interest and on Investment Appraisal, and then watch my Paper FM lectures. The Paper FM lectures are a complete free course and cover everything needed to be able to pass the exam well.
(I get the impression from your earlier posts that you are attempting questions in your Exam Kit without having studied the topics first. I hope that I am wrong, because this is a hard exam and you cannot learn from just practicing past questions. This is not a simple university type exam and is harder than most university exams!)
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