[Verse 1]
A dollar today is worth more than tomorrow
That's the golden rule you need to follow
Interest rates and inflation take their toll
Time erodes the value, that's the natural flow
Why wait for payment when you could invest
Compound returns will put you ahead of the rest
[Chorus]
Time value of money, money through time
Present worth is greater, that's the paradigm
Discount the future, bring it back today
NPV will show you the profitable way
Time value of money, the foundation stone
Of every capital decision that we own
[Verse 2]
Future cash flows need adjustment to compare
Discount rate reflects the risk that's always there
If you can earn ten percent year after year
Then future dollars are worth less, that's crystal clear
One hundred dollars five years down the line
Is only sixty-two today by design
[Chorus]
Time value of money, money through time
Present worth is greater, that's the paradigm
Discount the future, bring it back today
NPV will show you the profitable way
Time value of money, the foundation stone
Of every capital decision that we own
[Bridge]
Internal rate of return
Shows what percentage you earn
Payback period tells you when
You'll see your money again
But present value is the key
To compare what projects should be
[Verse 3]
Capital budgeting starts with this concept
Without understanding time, your math is wrecked
Every analyst knows this fundamental truth
Time destroys value, here's your living proof
So when you're choosing between Project A and B
Discount their cash flows and then you will see
[Chorus]
Time value of money, money through time
Present worth is greater, that's the paradigm
Discount the future, bring it back today
NPV will show you the profitable way
Time value of money, the foundation stone
Of every capital decision that we own
[Outro]
Remember this lesson as you analyze
Time diminishes value before your eyes
Discount the future to present day worth
That's how you measure a project's true girth