Capital Budgeting
The decision to invest is a continual challenge, requiring insights into a firm's strategic direction, bottlenecks, cash flows, and expected risks. The Capital Budgeting course provides clarity by describing the process flow for capital requests. It also covers the primary methods for determining whether a proposed investment is acceptable, as well as a number of strategic and risk-based considerations. Lease or buy financing options are also discussed, along with a system of capital budgeting controls. In short, the course provides the knowledge to assemble and operate a reliable capital budgeting system.
Format
PDF Course
Level
Overview
Duration
5 Hours
Course Information
Author: Steven Bragg
Course Number: FN1019
Table of Contents
Chapter 1. Overview of Capital Budgeting
Chapter 2. Capital Budgeting Strategy
Chapter 3. Discounted Cash Flow Analysis
Chapter 4. The Cost of Capital
Chapter 5. Constraint Analysis
Chapter 6. Other Capital Budgeting Analyses
Chapter 7. The Lease or Buy Decision
Chapter 8. Capital Budgeting Controls
Learning Objectives
- Recognize the alterations available for improving an investment proposal, why sunk costs are excluded from proposals, and the alternatives for capital rationing.
- Identify the market conditions in which different types of investments and investment decisions will be made.
- Identify the basis for discounted cash flow analysis, and how net present value can be used.
- Identify the elements of the cost of capital, and note how the cost of capital is calculated.
- Recognize the derivation of throughput, the best ways to improve financial results, and situations in which local optimization is occurring.
- Recognize the uses to which payback, real option, and complex environment analysis can be used to review investment proposals.
- Specify the concepts involved in the lease or buy decision process, and the information to include in or exclude from the decision.
- Identify the issues to be verified as part of the analysis of a capital budgeting request form.
Level: Overview
Instructional Method: QAS Self-Study
NASBA Category: Finance
Prerequisites: None
Advance Preparation: None
Latest Review Date: April 2024
Program Registration Requirements: Click on the Enroll button to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.
Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.