Imagine you plan to invest a fixed amount, say $1,000, every year for the next five years at a 5 percent interest rate. The time value of money comes into play here. The first $1,000 you invest ...

To calculate residual value, start with the asset's original purchase price. This is the amount paid when the asset was new, such as the cost of a car, machine, or piece of equipment.

It’s about strategic timing. And when it comes to capital investments, the time value of money favors bold, calculated moves. Think like an investor, not just a business owner ...