how is the time value of money used in finance 
it would be hard to find a single area of finance where the time value of money does not influence the decision making process the time value of money is the central concept in discounted cash flow dcf analysis which is one of the most popular and influential methods for valuing investment opportunities it is also an integral part of financial planning and risk management activities pension fund managers for instance consider the time value of money to ensure that their account holders will receive adequate funds in retirement 