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    Time Value of Money - Ankur Warikoo

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    Faiyazul Islam
    The document calculates the opportunity cost, evaluation cost, and real cost of the person's time based on their monthly salary of ₹156,000 working 9 hours a day for 21 days a month. It finds that the person spends ₹49,524 a month on 2 hours of daily TV/OTT/Social Media, representing an opportunity cost. It also provides guidance that any activity requiring an hour of time is only worthwhile if it saves more than ₹825. Finally, it notes that if the person spends 2 hours commuting daily, their effective salary is reduced to ₹121,333 due to the value of lost commute time.

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    Time Value of Money - Ankur Warikoo

    Uploaded by

    Faiyazul Islam
    20 views2 pages
    The document calculates the opportunity cost, evaluation cost, and real cost of the person's time based on their monthly salary of ₹156,000 working 9 hours a day for 21 days a month. It finds that the person spends ₹49,524 a month on 2 hours of daily TV/OTT/Social Media, representing an opportunity cost. It also provides guidance that any activity requiring an hour of time is only worthwhile if it saves more than ₹825. Finally, it notes that if the person spends 2 hours commuting daily, their effective salary is reduced to ₹121,333 due to the value of lost commute time.

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    The document calculates the opportunity cost, evaluation cost, and real cost of the person's time based on their monthly salary of ₹156,000 working 9 hours a day for 21 days a month. It finds that the person spends ₹49,524 a month on 2 hours of daily TV/OTT/Social Media, representing an opportunity cost. It also provides guidance that any activity requiring an hour of time is only worthwhile if it saves more than ₹825. Finally, it notes that if the person spends 2 hours commuting daily, their effective salary is reduced to ₹121,333 due to the value of lost commute time.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    20 views2 pages

    Time Value of Money - Ankur Warikoo

    Uploaded by

    Faiyazul Islam
    The document calculates the opportunity cost, evaluation cost, and real cost of the person's time based on their monthly salary of ₹156,000 working 9 hours a day for 21 days a month. It finds that the person spends ₹49,524 a month on 2 hours of daily TV/OTT/Social Media, representing an opportunity cost. It also provides guidance that any activity requiring an hour of time is only worthwhile if it saves more than ₹825. Finally, it notes that if the person spends 2 hours commuting daily, their effective salary is reduced to ₹121,333 due to the value of lost commute time.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    Your monthly salary/income 156,000

    If you are a student, put the approx fresher salary


    Number of hours you work/day 9
    Number of days you work/month 21

    Your per hour cost, basis this, is ₹ 825

    What does this mean?

    Opportunity cost
    How many hours of TV/OTT/Social Media do you consume everyday? 2
    This means, in a month you spend ₹ 49,524 , which you do not see!

    Evaluation cost
    If you have to spend an hour of your time which saves you ₹ 825 or less, then that is not a good use of your time
    If you spend an hour and save more, then go for it!

    Real cost
    If you travel 2 hours everyday (post COVID) to go to work, then your actual salary is not 156,000
    It is actually 121,333 pm, because of the commute time that you spend
    Or you could think of this as a higher rent you pay for your home.
    hat is not a good use of your time

    pm

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