The learnings I got from Business and Corporate Finance course are that the all the identical

goods must have identical price, if we have opportunity to invest simultaneously in different
markets then they should be traded for same price which can be understood by Law of One Price.
I understood the concept of arbitrage by which we can take advantage by price difference by
buying or selling equivalent products in different markets. Unfair trade or arbitrage is when it is
feasible to earn without incurring any risks, opportunity arises by taking any investment or risk.
For calculating the present values of future cash flows, we use a discount rate. We undervalue
CFs utilizing the hurdle rate, which is equivalent to the opportunity cost of capital, from
investments in the securities market, we could gain. The Decision Rule for NPV The net present
value (NPV) Choose the investment option that has the largest NPV when making a decision.
Accept those projects that have a positive NPV because doing so is the same as getting the NPV
in cash now. Negative NPV projects should be rejected since doing so will lower investors'
wealth. NPV The difference between the present value of a project or investment's expenses and
benefits is known as the net present value, or NPV. NPV is equal to PV (benefits minus costs), or
PV=NPV (All project cash-flows). Annuities and Perpetuities are occasionally shortcuts that let
us swiftly complete the calculations. An asset known as an annuity, such as a car loan or a
mortgage, pays a specific amount every period for a predetermined number of periods. A
perpetual asset is one that pays a set amount eternally, such as preferred stock. A set cash
dividend paid out every three months was guaranteed by stockholders. NPV changes as one of
the assumptions changes while keeping the other assumptions constant. Scenario Analysis
examines the impact of simultaneously modifying several assumptions on the NPV. NPV makes
it easier to make decisions whether to accept the investment or reject it. For identifying
systematic mistakes in finance and handling them with care we use the internal rate of Return
(IRR) in which it sets interest rate sets the net present value of cash flows to zero. I got to know
more about accounting which is used to analyze the financial transactions of businesses. By
accounting we can analyze the financial position and performance of companies. Accounting and
finance are very much necessary for making managerial decisions.