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
