Which financial concept states that a dollar received today is worth more than a dollar received in the future?

Explanation

Core Concept: The Time Value of Money (TVM) reflects the principle that money available at the present time is worth more than the identical sum in the future due to its potential earning capacity. Context/Distractors: Cost of capital is the required rate of return, capital structure is the mix of debt and equity, and leverage measures fixed costs. Exam Tip/Key Fact: TVM forms the foundational basis for discounted cash flow (DCF) techniques like NPV and IRR.