The Time Value of Money is one of the most important concepts in finance. It is an important concept to understand as it underlies commonly used securities valuation and financial planning models. One of the most analyzed versions of the Time Value of Money concept is in the hypothetical situation where a person wins the lottery. Is it more wise to take the upfront, lump sum or an annuity stream? This paper is a primer on the Time Value of Money, where we explore this scenario and other analyses.

Download the PDF