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Operations Management: Processes and Supply Chains, 12th Edition
book

Operations Management: Processes and Supply Chains, 12th Edition

by Lee J. Krajewski, Manoj K. Malhotra, Larry P. Ritzman
January 2018
Intermediate to advanced content levelIntermediate to advanced
480 pages
236h 9m
English
Pearson
Content preview from Operations Management: Processes and Supply Chains, 12th Edition

Time Value of Money

An important concept underlying many financial analysis techniques is that a dollar in hand today is worth more than a dollar to be received in the future. A dollar in hand can be invested to earn a return so that more than one dollar will be available in the future. This concept is known as the time value of money.

Future Value of an Investment

If $5,000 is invested at 10 percent interest for 1 year, at the end of the year the $5,000 will have earned $500 in interest and the total amount available will be $5,500. If the interest earned is allowed to accumulate, it also earns interest ...

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Publisher Resources

ISBN: 9780134741062