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https://www.bullionvault.com/gold-news/money-time-value-tesla-121120201

An interesting article on the fundamentals of assessing time value of money. This article talks about inflationary, and deflationary pressures as investors assess future payments from investments. In this context the author discusses the valuation of Tesla stocks. With the central banks controlling volatility and bankruptcy, companies like Tesla can dream audaciously. 

Reflection Questions

  1. A bird in hand is worth two in the bush. How does this phrase tie into the time value of money?
  2. If the future is worth the same as, or more than the present, and that trajectory is expected to continue, then that drives up the value of any fixed income stream. Can you think of companies that might provide a positive fixed income stream based on the time value of money concept?
  3. According to the article what are the key factors on which Tesla valuation is based?

KHAN ACADEMY VIDEO ON TIME VALUE OF MONEY

https://www.khanacademy.org/economics-finance-domain/core-finance/interest-tutorial/present-value/v/time-value-of-money

 This 8:16 second video explains the fundamental concept of TIME VALUE OF MONEY to the student. Sal explains the present and future value of a sum of money by working out numerical examples. 

  1. How would you describe the time value of money concept to someone who is not familiar with it?
  2. How is the present value concept related to the future value concept?
  3. Provide an example of when this concept would be useful to you in planning your present or future financial planning process?

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