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The Building Blocks of ROI
Financial intelligence is all about understanding how the financial side of business works and how financial decisions are made. The principles discussed in this chapter are the foundation of how some decisions—those relating to capital investment—are made in corporate America.
Most of us need little introduction to the fundamental principle of finance known as the time value of money. The reason is that we take advantage of it every day in our personal finances. We take out home mortgages and car loans. We run up balances on our credit cards. Meanwhile, we’re putting our own savings into interest-bearing checking or savings accounts, money-market funds, treasury bills, stocks and I bonds, and probably half a dozen ...
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