Saturday, March 10, 2007

Time Value of Money

Apple and Orange were at headquarters of a big company at Nariman Point, Mumbai's premier business district. Both were MBA students and had come to meet a manager in that company for some inputs on their project.

The meeting went well and Apple and Orange were gazing at skyscrapers at Nariman Point.

“One day I’ll become CEO of this company”, Apple exclaimed ambitiously. Then he asked curiously, “How much does the CEO of this company earn?”

“More than 4 crores (40 million) rupees per annum plus stock options plus bungalow plus Mercedes and many other perks”, Orange responded to the opportunity of showing his general knowledge.

“I won’t be happy with only Mercedes. Also I won’t travel in public airplanes. I’ll buy a private jet at company’s expense”, Apple said visualizing himself in the private jet.

“Yeah, we’ll earn big bucks”, Orange also shared the big dream.

It was time to reach home and both had to catch a local train, at CST station, around three kilometers from Nariman Point.

“We’ll go by cab, but I don’t have money now. Please pay for cab, I’ll pay you later”, Orange requested.

Apple checked his wallet, it was empty.

“We’ll walk to the station. We won’t get time to walk when we’ll have private jet and Mercedes”, Apple started walking.

Both wished for some money, few lakhs if not crores from their future.

-- Time Value of Money: A dollar today is worth more than a dollar tomorrow.

-- In India: 1 crore = 10 million = 100 lakhs.


daagini said...

I dint understand this one :(

freakyTechie said...

Interesting..very interesting shailesh, nice blend of ur learned lesson with ur typical style of blogging :)
A very good example of Time Value of Money dude.

nk said...
This comment has been removed by the author.
Narayan said...

Great work Shailesh. Keep it up !!

Shailesh said...

# Daagini,

:) You'll understand this in a month or two.

The story is for people who will earn lot of money in future, but don't have much now.

# Freakytechie,

Thanks for appreciation.

# Narayan,

Thanks for commenting.

Chirag Gada said...

Hey Dude thats a good one. I appreciate your subtle way of writing. Way to go!

Khozem F Sahiwala said...

Well, Everyone has a right to dream.
Ofcourse, there is an another issue to make it true.
one life objective comes only by the way of dream.

Neihal said...


actually not exactly though, but it reminds me of a story my Mom told us when we were kids.

Dileep said...

I liked this blog. I found it an amusing way to present the concept of " time value of money" we would have to think about " Time Value of our Lives " too :)

Shailesh said...

# Chirag,

Thanks for your first comment on this blog.

# Neihal,

Thanks for sharing your thoughts.

# Dileep,

Thanks :)
"Time Value of our lives", good concept.. but estimating 'cash-flow' would be difficult ;)

amooma said...

shrug. well...typical :D

PJ said...

Hey..just read all ur writins in past week,sumthing to say about it:
Dilemmas have..
But no answers....the definition by itself

HugoBoss said...

Good work Shailesh..

ravi said...

dude u make sum serious writing with funny context.........truly fun to read ur blog nw..sort of getting addicted!!

Varun Seth said...

Gud one

Dey wud ofcourse get rich and value of money will depreciate

"We won’t get time to walk when we’ll have private jet and Mercedes" is da crux

U shud name this blog "Time value of a Walk"