Capital Budgeting

$89

Learn how to interpret and apply the major methods of capital budgeting, including discounted cash flow, payback, NPV, return on investment and risks associated with capital budgeting. You will be able to apply your new skills to rank capital investment proposals and support informed management decisions.

Description

Capital budgeting, which is also called “investment appraisal,” is the planning process used to determine which of an organization’s long term investments such as new machinery, replacement machinery, new plants, new products, and research development projects should be pursued.

Windows of opportunity come into play when budgeting for capital because they can provide opportunities for firms to maximize returns on investment. Limitations such as time, money, and logistics frequently prevent a company from moving forward with too many major expenditure projects at the same time. Instead, a company will often rank its projects by priority and profitability.

In this course, we will examine the major methods of capital budgeting include discounted cash flow, payback, NPV, return on investment and risks associated with capital budgeting. You will be able to rank capital investment proposals and support informed management decision.

COURSE DETAILS
  • Suitable For: Middle and Senior Managers
  • Course Duration: 20 Hours
  • Access Duration: 90 days from date of enrolment
  • Certification: Download your Certificate on completion
  • Additional Resources: Download Learners manual, additional articles and worksheets
COURSE CONTENT

This course comprises the following lessons:

Lesson 1 – Getting Started

Video – Famous Project Cost Overruns

SECTION 1: THE CONTEXT FOR CAPITAL BUDGETING

Lesson 2 – The Context for Capital Budgeting

Video – Introduction to Capital Budgeting

Lesson 3 – Capital Budgeting Methods (Models)

Capital Budgeting – Quiz 1

SECTION 2: THE COST OF CAPITAL

Lesson 4 – The Cost of Capital

Video – The Weighted Average Cost of Capital

Lesson 5 – Using WACC

Capital Budgeting – Quiz 2

SECTION 3: CALCULATING RETURNS

Lesson 6 – Capital Budgeting and ARR

Video – How to Calculate the ARR

Lesson 7 – Capital Budgeting and Payback Period

Video – Calculating Payback

Lesson 8 – Capital Budgeting and NPV

Video – How to Calculate NPV

Lesson 9 – Capital Budgeting and IRR

Video – How to Calculate IRR

SECTION 4: DECISION MAKING

Lesson 10 – Investment Decision Making

Lesson 11 – Wrapping-up

Capital Budgeting – Quiz 3

Capital Budgeting – Course Evaluation

CERTIFICATION: DOWNLOAD YOUR CPD CERTIFICATE ON COMPLETION