Time Value of Money

Time Value of Money. “A stitch in time saves nine”.

[Audio] Sir! The steel price index is peaking. We should buy more steel Rather than investing in steel at this stage. We should ramp up our works because that would give us more returns Sir Can you please elaborate more? A rupee today is better than a rupee tomorrow. That's Time Value of Money Oh! Higher returns due to peaking of indices? Now you hit the nail on the head! Consider this case study.

[Audio] Here is a case study of the increase in % age returns and diminishing progress in Laying of Pipeline Here the % return of investment is increasing, More returns are expected But the progress of work is slowing down.

[Audio] Here return on the investment is expected to decease But the progress of Work is ramping up.

[Audio] Yes Sir! Lest we loose the value of our money! So! Planning of work considering time value of money only helps boost returns.