Time Value of Money: Essence There are many factors that may influence the development of the current project and define if the idea to sell T-shirts with the logo “SENIOR 2016” can be justified and beneficial for its developers. In this part of the project, it is necessary to discuss the concept of the time value of money and understand how it can impact the project, create a spreadsheet that can illustrate the interpretation of the costs and the effects of the project decisions on the cost of money. People say that time is money, and they have a good reason to say so (Heldman, 2011). The point is that a dollar is a currency that is not stable. Today, a dollar is usually worth more in comparison to a dollar in one year (Kerzner, 2013). It can be explained by the evaluation of such a concept as the time value of money. This concept helps to realize if the revenue stream for the project under consideration can be worth more than it costs today and if it is beneficial to continue working on the project (to produce T-shirts with a special label “Senior 2016). It is evident that if people have access to some money today and have an idea to be developed, it is reasonable to invest money and believe that it is possible to make a profit. However, it is very important to understand the relation between money that can be received in one year and the worth of money today. There is a definite formula that helps to calculate the difference and understand what changes can be expected in one, two, or a whatever-it-needs period of time. FV = PV*(1+ k ) n In this formula: FV is Future Value of an investment PV is Present Value k is the cost of capital (or the interest rate) n is the number of years for the analysis Taking into consideration these issues, it is possible to understand the changes invested money may undergo in one year. Time Value of Money: Impact on a Project As a rule, project managers do not make business decisions in regards to their projects. However, a good project manager has to be concerned with time, cost, payback periods, and return on investment (Bianco, Nelson, & Poole. 2010). That is why the time value of money is the concept that plays an important role in the chosen business: businessmen want to know the worth of the investments today, as well as the total value of the investments in regards to the project. The current project will have cash flows that occur today and will occur in the future. The implementation of the technique of discounted cash flow helps to consider the timing during which profits can risk and show the effective rate of return on the total investment of the project (Venkataraman & Pinto, 2008). In general, in this project, it is suggested to borrow $1000 in order to produce 200 T-shirts. It is expected to set the price of the product at about $10. Then, the sale of 200 T-shirts will bring $2000. However, it is also necessary to consider the fact that a dollar today will cost most in one year. And it is hard to neglect the fact that today’s investment differs a lot from the one-year income. That is why the time value of money is important for the project under analysis. Its identification helps to make correct financial solutions and understand the potential worth of decision delays. Time Value of Money: Importance for Companies’ Consideration It is not an easy task to start up a new business. It is hard to