Fundamental Concepts and Tools of Business finance

​acquisition and investment of cash for the purpose of enhancing value and wealth

​public and

​private

​provision of money for commercial use

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​concerned with the effective use of money

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​covers the financial management of private profit seeking business (trade, manufacturing, service, utilities)

​

​maximizing profit

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​maximizing profitability

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​maximizing profit subject to cash constraint

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​maximizing net present worth

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​seeking optimum position along risk-return frontier

​What is the value today of 100,000 to be received next year assuming that the prevailing rate of interest is ten percent (10%) per annum

​100,000

​1.10

​= 90,909.09

​owners

​management

​creditors

​government

​investors

​