Finance ( Philosophy )

Philosophy

• 
  
• Always look the money forward (FV)
• (PV) - The value of the money when you start to using it
• Benefit exceed costs
• Value creation only through good ideas/projects

Company

• It is a set of ideas
• A collection of projects

Decision Criterion

• Make sense (benefit exceed costs)
• Unit of measurement
• Benchmark obvious
• Easy to communicate
• Easy to compare different ideas/projects
• Easy to calculate

Cash Flow

• The cash flow come from the ideas
• Thing in terms of PROFITS

Interest Rate

• Captures the opportunity cost of investing in the idea (business)