Capital Budgeting Essentials

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  Curs on-line
  4 ore
Predare in limba: Engleza
Structura cursului

Capital Budgeting: The Capital Budgeting Process

  • describe capital budgeting


  • associate capital budgeting activities with the stages of the process in which they're performed


  • describe the relationship between organizational strategy and capital investment opportunities


  • recognize appropriate sources and suggestions for capital budgeting opportunities


  • perform key steps to screen project ideas




Capital Budgeting: Net Present Value and Internal Rate of Return

  • recognize the value of quantitative assessment techniques


  • describe the time value of money


  • calculate net present value (NPV) for a project


  • interpret NPV under various project circumstances using the NPV decision rules


  • apply the IRR decision rule


  • use NPV and IRR to assess potential projects




Capital Budgeting: Discounted Payback Period and Profitability Index

  • recognize the benefit of considering the time value of money when quantitatively assessing capital projects


  • perform a preliminary screening of a capital budgeting project based on the discounted payback period (DPBP)


  • distinguish between strengths and limitations of the DPBP method


  • calculate profitability index (PI) and use it to make a capital budgeting decision


  • distinguish between NPV and PI in terms of their strengths and limitations


  • determine which quantitative method or methods will be most useful for making capital budgeting decisions in a given scenario




Capital Budgeting: Capital Allocation

  • describe capital allocation


  • describe common quantitative measures used in capital allocation decisions


  • recognize how qualitative factors can influence capital budgeting decisions


  • rank projects based on qualitative factors


  • allocate capital based on quantitative information about projects


  • describe the benefits of post-implementation auditing