Summary
In this chapter, many basic concepts related to finance were introduced, such as present value of one future cash flow, present value of perpetuity, present value of annuity, future value of one cash flow/annuity, and the concept of present of annuity due. The several decision rules were discussed in detail, such as the NPV rule, IRR rule, and payback period rule. For the next chapter, we will discuss how to retrieve data associated with economics, finance, and accounting from several open sources such as Yahoo!Finance, Google finance, Prof. French's data library, and Federal Research's economic data library.