The concept that maintains that the owner of a cash flow will value it differently depending on when it occurs is called the Time Value of Money (TVM). This principle states that money available today is worth more than the same amount in the future due to its potential earning capacity. Essentially, the timing of receiving or paying a cash flow affects its value to the owner, leading to different valuations for cash flows occurring at different points in time.
This concept is fundamental in financial analysis and valuation methods such as Discounted Cash Flow (DCF), where future cash flows are discounted back to their present value to account for the time value of money. The DCF method reflects the idea that cash flows received sooner are more valuable than those received later because they can be reinvested or have lower risk over time.