Why is the concept of the time value of money important for making long-term project decisions?

Discussion 2

250 word minimum

In a line item budget, you begin with initial inflationary adjustments only in an effort to explain how much is required to maintain the buying power from the prior fiscal period. A member demands to know why you require these increases. How would you explain the impact of inflation on your budget proposal?

Chen, G. G., Weikart, L. A., & Williams, D. W. (2014). Budget Tools: Financial Methods in the Public Sector (2nd ed.). SAGE Publications, Inc. (US). https://ccis.vitalsource.com/books/9781483324050

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