Examine The Concept Of Time Value Of Money In Relation To Corpor

"Time Value of Money and Bond Valuation" Please respond to the following:Examine the concept of time value of money in relation to corporate managers. Propose two (2) methods in which time value of money can help corporate managers in general.Time value of money is a concept used to describe the relationship between time and the value of money. The principle argues that, money receivable is more valuable today than the same amount years later because of the impact of inflation. Managers should conceder the time value of money during purchasing and investing. According to the concept, money today can purchase more goods and services than the same amount of money tomorrow. Therefore, managers should plan their expenditure and spend as early as possible or risk the consequences of inflation. Similarly, managers should invest any surplus money in order to increase its value. Examine the pros and cons of a sinking fund from the viewpoint of both a firm and its bondholders. Determine the fundamental manner in which this knowledge could be helpful to a financial manager. Provide a rationale for your response.Sinking fund is a fund established by the bond issuers to make the repayment of the capital much easier.