Chapter 7. Equivalence
As long as the interest rate is not 0%, a given amount of money right now doesn't have the same value as that same amount of money at some other point in time. So it isn't trivial to compare an amount of money at one point in time to an amount of money at some other time. How do we know whether these two amounts of money at these two different times have the same value? How do we find out if they are equivalent? The notion of equivalence is key to making business decisions. If one amount of money at one time is the financial view of one proposal and the other amount of money at another time is the financial view of another proposal, how do we choose between them? If they are worth equivalent amounts then, financially, ...
Get Return on Software: Maximizing the Return on Your Software Investment now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
