Capital Budgeting - Investment Analysis

Course Overview

All businesses make investment decisions, either short term or long term. Good consideration and attention must be paid when it comes to long term capital budgeting decisions, where a business or an individual is thinking of investing in a non-current asset, large or small, or even starting a new project.
Such decisions should not just depend on gut feelings or the mere wishes of the decision maker; rather, they should be supported by rational calculations to see the financial impact of the decisions on an individual’s or organisation’s wealth.

This course is designed to help individuals master the skills needed to evaluate investment decisions, which we call capital budgeting in business.
The average duration of each lecture is approximately twenty minutes in order to explain the topic and give a few questions / examples to show the application of knowledge. There are more than twenty topics touched on, but overall, it is about the financial impact of your decisions.
Apart from two long case studies, almost every lecture (with three exceptions) has question examples and solutions explained from real life scenarios.

Who can benefit from this course ?
This course is appropriate for accountants, finance specialists and accounting and finance students doing BBA, MBA, ACCA, CIMA, CPA, CFA, CAT, and ICAEW

Topics Covered

Payback Period,
ROCE (Return on Capital Employed)
Discounted Cash Flow (DCF)
Net Present Value (NPV)
Internal Rate of Return (IRR)
Allowing for Inflation in Project Appraisal
Allowing for Taxation in Project Appraisal
Specific Investment Decisions
Project Appraisal in Risk
Certainty Equivalents and Mutually Exclusive Projects
Probability Analysis in Project Appraisal
Lease or Buy Decisions
Asset Replacement Decisions
Equivalent Annual Benefits in Mutually Exclusive Projects
International Investment Decisions
Adjusted Present Value
Changing Risks in Investment Decisions

Lecture Videos

Comprehensive yet easy-to-understand lecture videos provide complete coverage of the exam syllabus.

Practice Question Videos

Explanatory videos for practice questions help you understand the application of knowledge and concepts.

Short Notes

Our short notes are up to date and well prepared by our experts. These notes are good source for revision before exams.

Course Curriculum

Free Previews
3 Lessons
- Introduction to Investment Appraisal (32:44)
  Preview
- ARR and ROCE (25:46)
  Preview
- Compounding and Discounting (31:31)
  Preview
Introduction to Investment decisions
17 Lessons
- 1. Introduction to Investment Appraisal (32:44)
  Start
- 2. Relevant Cash Flows (25:27)
  Start
- 3. Payback Period Method (20:18)
  Start
- 4. ARR and ROCE
  Start
- 5. Introduction to Discounted Cash Flow - DCF (9:14)
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- 6. Shareholder Wealth Maximization and DCF (15:47)
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- 7. Compounding and Discounting (31:31)
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- 8. Discounting the Cash Flows - Example (19:56)
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- 9. Discount Factors (5:36)
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- 10. Annuity (14:58)
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- 11. Annuity Examples Solved (18:47)
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- 12. Perpetuities (13:48)
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- 13. Net Present Value - NPV (25:38)
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- 14. Net Present Value Further Explained (14:05)
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- 15. IRR - Internal Rate of Return (26:03)
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- 16. Assessment of DVF as Method of Investment Appraisal (16:29)
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- 17. Non Conventional Cash Flows (5:25)
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Allowing for inflation and taxation
6 Lessons
- 1. Allowing for Inflation and Taxation - Inflation (21:01)
  Start
- 2. Allowing for Inflation and Taxation - Taxation (26:10)
  Start
- 3. Allowing for Inflation and Taxation - Working Capital (08:47)
  Start
- 4. Long Question with Solution (39:44)
  Start
- 5. Inflation and Taxation MCQ 1 (31:57)
  Start
- 6. Inflation and Taxation MCQ 2 (22:07)
  Start
Project appraisal and risk
5 Lessons
- 1. Project Appraisal and Risk (21:39)
  Start
- 2. Project Appraisal and Risk - Certainty Equivalents (05:55)
  Start
- 3. Probability Analysis in Project Appraisal and Discounted Payback (20:23)
  Start
- 4. Questions and Solutions - Sensitivity Analysis (28:59)
  Start
- 5. Question with Solution- Expected NPV Using the Probabilities (38:57)
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Specific investment decisions
5 Lessons
- 1. Lease or Buy (37:56)
  Start
- 2. Asset Replacement Decisions (18:07)
  Start
- 3. Equivalent Annual Benefits and Capital Rationing (15:57)
  Start
- 4. Question - Lease or Buy without Taxation (33:18)
  Start
- 5. Question - Lease or Buy with Taxation (28:31)
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International Investment Appraisal and Changing Risks
7 Lessons
- 1. International Investment Decisions - Introduction (43:10)
  Start
- 2. Evaluating the Projects (23:28)
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- 3. Financing Decisions (26:43)
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- 4. Scenario Question (01:12:53)
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- 5. International Investmet Overview (20:50)
  Start
- 6. Cost of Capital and Changing Risk (19:30)
  Start
- 7. Adjusted Present Value (01:06:20)
  Start

Course Pricing

Capital Budgeting

$18 USD

A Complete Courses on Investment Appraisal
- Detailed video lectures covering the entire topic
- Questions and solution videos
- Quizzes
- Certificate of completion

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