Chapter survival toolkit
Overview
This chapter reviews the arithmetic of finance. We look at the relationships between proportions and percentages; growth, interest and discount rates; interest/discount rates, risk, and the present and future value of money. These are deeply intertwined, and they are critical elements in decisions about money when time is involved. They are also important for many other management issues, including growth in profits and inflation. The chapter concludes by looking at many practical applications of these relationships – and previews their use in assessing financial instruments and projects.
Prerequisites
If you want to be able to perform the calculations introduced in this chapter, you really need to be on top ...
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