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 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 organization’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 THIS COURSE IS FOR
This course is appropriate for accountants, finance specialists and accounting and finance students doing BBA, MBA, ACCA, CIMA, CPA, CFA, CAT, and ICAEW

WHAT IS COVERED IN THIS COURSE?
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. View Tables of Contents

Practice Question Videos
Videos for exam questions from practice kit and previous exam questions.
Explanations are included for all answer.

Short Notes
Our exam focused 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
- Present Value, Discount Rates, NPV and IRR (01:19:16)
  Preview
- What is Net Present Value (NPV) (07:55)
  Preview
- Annuity and Perpetuity (30:10)
  Preview
Introduction to Investment decisions
3 Lessons
- 1. Investment Decisions - Introduction (27:10)
  Start
- 2. Investment Decisions - Relevant Cash Flows (38:05)
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- 3. Questions and Solutions - ARR and ROCE (23:59)
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Investment appraisal using DCF methods
9 Lessons
- 1. Compounding and Discounting (18:31)
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- 2. Discounted Cash Flow (DCF) and Net Present Value (28:51)
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- 3. What is Net Present Value (NPV) (07:55)
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- 4. Annuity and Perpetuity (30:10)
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- 5. Investment Appraisal (14:31)
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- 6. Investment Appraisal - Annuities (17:53)
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- 7. Investment Appraisal Perpetuity (22:25)
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- 8. Investment Appraisal - NVP - IRR and Chapter Closing (22:57)
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- 9. Questions and Solutions - Annuity and Perpetuity (41:30)
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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)
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- 3. Allowing for Inflation and Taxation - Working Capital (08:47)
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- 4. Long Question with Solution (39:44)
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- 5. Inflation and Taxation MCQ 1 (31:57)
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- 6. Inflation and Taxation MCQ 2 (22:07)
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Project appraisal and risk
5 Lessons
- 1. Project Appraisal and Risk (21:39)
  Start
- 2. Project Appraisal and Risk - Certainty Equivalents (05:55)
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- 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)
  Start
- 4. Scenario Question (01:12:53)
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- 5. International Investmet Overview (20:50)
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- 6. Cost of Capital and Changing Risk (19:30)
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- 7. Adjusted Present Value (01:06:20)
  Start

Course Pricing

Capital Budgeting
$18 USD

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