Hi, Yael here again. Today we're going to talk about one of fundamental ideas in business. Time value of money. Time value of money matters when investments today yields benefit in the future. For instance, if you're buying a piece of machinery in order to manufacture and produce products that you're going to sell in six months or in a year. You may want to consider how timing affects you. Or if you're investing in a marketing campaign in order to secure lifelong customers in the future, at some point, you may want to think about when those revenues will start coming in. And how timing affects you there. To understand better why timing matters when valuing projects, or valuing business opportunities, let's consider four small examples. In each of these examples, we're going to consider the same investment, and the same revenue. Let's say the investment is equal to 100K and my revenue = 200k. Consider the following four projects. In project number one we will consider a situation in which we invest one 100K today in order to gain 200K today as well. In project number 2, we'll consider a situation in which we wait a year and in one year time, we invest 100K in order to gain 200K. In project number 3 we have our timeline and in this case we are going to invest 100K immediately today and in one year time we are going, I will make it clear this is one year time, we are going to gain our 200K revenue. And finally, our fourth projects that we'rw going to consider is a situation in which we get 200K immediately today and we spend or we invest 100K in one year's time. Well, how this timing matter in this four situation. Well, if we look at project number 1 and project number 2, which do we prefer? Clearly or intuitively, we might prefer all of our money today than waiting one year to get our funds. Why is that? Well, if we have the money today, we can invest it and have it grow with some interest. If we have it today, the net of 100 that we are facing here, we might actually not worry about inflation and what will happen in the future. And so, getting a net of 100 today is preferred to getting a net of 100 in one year's time, intuitive. How about projects 3 and 4. Well, in project number 3, we're spending the money sooner. And we're gaining our benefits in the future in one year time. That might seem inferior or slightly lasts worthwhile than the idea of getting in them both today. So this would probably range less than a 100K net. In project four We're actually getting our revenue immediately, today, 200k immediately. And we're postponing our investment by a year, which is great. We don't have to pay money until a year's time. And so this seems that on, it will net something larger than 100. And so if we compare all of these projects We will see that project number 4 is preferred to all of these combinations. And all that matters was the timing of whether when we got our revenue and when we had to spend and pay our investment. What makes things interesting is that we can use the concept of time value of money to compare projects that have different investments and different revenues across different timelines. And that's what we're going to do next.