This philosophy holds true because money today can be invested and potentially grow into a large amount in the future the present value of a future cash flow is calculated by dividing the future cash flow by a discount factor that incorporates the amount of time that will pass and expected interest rates the future value of sum of money today is calculated by multiplying the amount of cash by a function of the expected rate of return over the expected time period the time value of money is used to make strategic long term financial decision such as whether to invest in a project or with cash flow execution is more favorable so this was all just for today and I hope value of time of money is understood by you all so share your views on how they're do like this