ABSTRACT
This introduction presents an overview of key concepts discussed in the subsequent chapters of this book. The book examines how to make investment decisions and the various investment criteria methods. It focuses on the idea of free cash flows as a measure of new value created by investment decisions. The key to the success of any company is to invest in the right opportunities and the right means of production, which, in turn, can make money for the investors. This book clarifies the difference between profit and cash - two concepts that can create much confusion for people who are new to corporate finance. It examines the characteristics and usage of share equity. The book discusses two types of debt - bank loans and bonds - as well as the costs of using these two instruments. Bonds are often ill-understood by beginners, so this book gives an overview of the basics of bonds.
