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Please explain the statement "financial analysis requires an explicit consideration of the time value of money." 

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The statement "financial analysis requires an explicit consideration of the time value of money" refers to the variations in relative value over a given period of time as money accrues interest or, conversely, loses value because of the effects of inflation.  

Inflation has historically been the single greatest determinant of the value of money over time.  The simplist way to look at this...

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