The time value of money, a crucial element of the discounted cash flow process, can be very tricky for some to grasp at first. Once we get the hang...

The time value of money, a crucial element of the discounted cash flow process, can be very tricky for some to grasp at first. Once we get the hang of it many students find it to be quite fun. I like the lottery example because it's something we can relate to and understand. We might not have won ourselves, but we get the idea! :0) We can use the time value of money to compare the lump sum payout up front versus the annual payments in the future!

For more insights on the time value of money and how we could apply it to winning the lottery check out the article below. Consider doing a few online searches yourself. See what articles or videos you can find to share with the group and post them here!

http://www.incomeinvesthome.com/fixed/timevalue.htm