why is is important to factor the time value of money for projects of less than one year?

Answer 1

Usually the time value of money means that a dollar now is worth more than a dollar in a years time. This is because of inflation and other such factors.

In a project that is less than a year, time is very important. If something overruns then the deadline wont be met.

Youre answer would be that its best to pay for materials and services later rather than sooner as the dollar would be worth less