Time value of money

Which of the following best explains why £1 received today is worth more than £1 received one year from now, assuming no inflation?

• AToday's pound can be invested immediately to earn a return, so it grows into more than £1 by the time the future pound arrives.
• BInflation will reduce the purchasing power of the future pound, so it buys less than today's pound.
• CFuture cash flows carry uncertainty, so they must be discounted to reflect the risk of not receiving them.
• DA pound today can be spent immediately, whereas a future pound cannot be accessed until it arrives, and people always prefer immediate consumption.