A. What would be the effect of ignoring the time value of money when making risk management decisions?
b. What does the net present value of a loss control investment really represent to the owners of the organization?

A) The effect of not taking the time value of assets into consideration during the threat management process is that one's assessments might end up being inaccurate. This inaccuracy arises from not taking into account real-world phenomena such as inflation and interest that have a significant impact on the value of money over time.

) The net present value of a loss control investment represents the difference between the initial investment and all projected cash flow for a venture. It helps the owners of an organization determine whether or not a proposed investment is worth pursuing. If the value is positive, the proposed venture will be pursued. Inversely, if the value is negative, the proposed venture will be vacated.

Explanation: Ignoring the time value of money in risk management decisions may lead to wrong decisions or, at least, less than optimal decisions.

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