Finance is such an important part of modern life that almost everyone can benefit from under-standing it better. What you may find surprising is that the financial problems facing PepsiCo or Microsoft are not really different from those facing an average investor, small business owner, entrepreneur, or family. On the most basic level, these problems are about how to allocate money. The choices are many: money can be borrowed or saved; money can be invested into projects, undertaken with partners or with the aid of a lender; projects can be avoided alto-gether if they do not appear valuable enough. Finance is about how best to decide among these alternatives—and this textbook will explain how.

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