Introduction: Finance and the Financial Crisis
Consider that you are about to undertake a long-term project, such as building a house, providing piano lessons as an ongoing business, growing apples, or manufacturing a new medicine. Within the academic field of finance, the goal of this project is to maximize the value of what you produce. The best way to put a measurable value on your project’s output is to wait until it is produced and see how much it sells in the marketplace. That is, the future market value of your output measured in monetary terms can be used to arrive at an accurate indication of your project’s current value.