The document discusses the concept of time value of money. It defines time value of money as the principle that money received in the present is worth more than the same amount received in the future. This is because money available now can be invested and earn interest. The document also discusses how time value of money is an important concept in financial management and capital budgeting decisions, as it allows comparing investment alternatives and cash flows over different time periods. It concludes by emphasizing the importance of considering time value of money when making various financial decisions to maximize profits.