ENTR 2215 Study Guide - Comprehensive Midterm Guide: Legal Personality, Byrsonima Crassifolia, Root Mean Square

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These areas are all interrelated and connected through the issue of valuation! To answer these questions, finance is a hybrid of: economics (the science of choosing among tradeoffs), statistics (the science of dealing with uncertainty), and, accounting (the language of business). Lecture notes prepared by pegaret pichler revised january 4, 2016. In nance a project is viewed as a series of cash ows: a repair shop. Expected earnings: ,000 per month, starting next month, for 24 months: a company"s environmental spill cleanup project. Cash ows: , 000 per year for 5 years: an investor purchases a certi cate of deposit (cd) from a bank for ,000. The bank will repay ,400 in two years: an education. It costs ,000, foregoes salary for two years, and pays off (an addi- tional) ,000 in salary for 30 more years: a lottery ticket costs , and pays ,000,000 with some prob.