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Overview

Approx 2 Hours To Complete Capital Budgeting Investment Decision Rules in English Language

This course will help to clarify capital budgeting fundamentals, how to calculate Net Present Values, IRR. payback period and which method should be used in project evaluations as all methods have their shortcoming and advantages.

You will also learn what are the shortcomings of different methods apart from being able to calculate. In this course we are going to learn, how do the corporates and managers make decisions related to investment into a new business, new product, new services.

Syllabus

    Introduction to the course and fundamentals

    How to calculate and use Net Present Values (NPV)?

    How to calculate payback period?

    How to calculate Internal Rate of Return (IRR)?

    How to choose mutually exclusive investment projects?

What you will learn

  • Basics of time value of money

  • Concept of compounding, discounting, present values

  • NPV method meaning and decision rules

  • Use of NPV with an example and practical life limitations of NPV method

  • NPV profile of the project to understand sensitivity

  • Payback period meaning and calculations

  • Drawback of payback period method

  • IRR, meaning & method of calculations with limitations

  • Example to demonstrate NPV and IRR calculation and inconsistent results

  • Case of multiple IRRs and MIRR as an attempt to fix the problem

  • How to choose between mutually exclusive projects

  • Choosing projects with different life

  • Choosing projects in budget constraints

  • Final summary of what we have learned in this course

About the instructor

Manish Gupta
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  • 1 Students
  • 13 Courses
  • Manish Gupta

    Skills :Business & Finance,Data Science,Accounting & Tax

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    Course Features

  • Lectures 14
  • Quizzes 0
  • Duration 2 Hours
  • Skill level Beginner
  • Language English
  • Assessments Yes