What does the concept of the time value of money imply?

The concept of the time value of money fundamentally asserts that a sum of money today is worth more than the same sum of money in the future. This principle is based on the idea that money has the potential to earn interest or generate returns over time, meaning that if you have a dollar today, you can invest it and potentially earn more than that dollar in the future.

The time value of money highlights factors such as interest rates, inflation, and opportunity cost. In contrast to other options, this concept does not support the idea that money loses value over time solely due to inflation, nor does it suggest that a sum of money retains the same value indefinitely. Instead, it emphasizes the benefits of having money now, allowing individuals or businesses to utilize that money for investment or consumption, which can lead to greater future earnings.

Option C effectively captures this essence by stating that a sum of money has greater value now than in the future, emphasizing the advantage of immediate financial resources compared to delayed availability.