Learn how to make capital budgeting decisions from a certified public accountant. Read more.
Robert (Bob) Steele CPA, CGMA, M.S. Tax, CPI
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Get Started with All Access PassBuy Only This CourseAbout This Course
Who this course is for:
- Business students
- Business professionals
What you’ll learn:Â
- Explain how to make capital budgeting decisions
- Discuss the common scenarios related to capital budgeting decisions
- Calculate the net present value (NPV) for a capital budgeting decision
- Calculate the internal rate of return (IRR) for a capital budgeting decision
- Calculate the payback period for a capital budgeting decision
- Calculate the modified internal rate of return (MIRR)
- Compare capital budgeting projects
Requirements:Â
- Basic understanding of corporate finance concepts
This course will show how to make capital budgeting decisions from a corporate finance perspective.
We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.
Capital budgeting decisions involve planning for projects and future cash flows extending more than one year into the future. The common example of a capital budgeting decision is the decision to purchase a large piece of equipment that will impact future cash flow for multiple years.
The typical format of a capital budgeting decision often includes a cash out flow at a time period zero, resulting in cash inflows, or reduced outflows due to increased efficiencies, over multiple years.
Because capital budgeting decisions impact cash flows for multiple years, time value of money concepts are used, including present value of one calculation and present value of annuity calculations.
The primary tools used in capital budgeting decisions are the net present value calculation (NPV) and the internal rate of return calculation (IRR). Both of these tools utilize time value of money concepts, and we will spend a lot of time with them.
We will also discuss the payback period calculation and the modified internal rate of return or (MIRR).
Our Promise to You
By the end of this course, you will have learned capital budgeting decisions.
10 Day Money Back Guarantee. If you are unsatisfied for any reason, simply contact us and we’ll give you a full refund. No questions asked.
Get started today and learn more about corporate finance.
Course Curriculum
| Section 1 - Introduction | |||
| Capital Budgeting Decision Overview | 00:00:00 | ||
| Payback Period | 00:00:00 | ||
| Net Present Value (NPV) | 00:00:00 | ||
| Internal Rate Of Return (IRR) | 00:00:00 | ||
| Project Selection Process | 00:00:00 | ||
| Modified Internal Rate Of Return (MIRR) | 00:00:00 | ||
| Fixed Asset Replacement Decision | 00:00:00 | ||
| Section 2 - Practice Problems | |||
| Cash Flow Calculation | 00:00:00 | ||
| Cash Flow Impact Of Depreciation Due To Taxes | 00:00:00 | ||
| Cash Flow Impact Of Tax Rate Change | 00:00:00 | ||
| Payback Period | 00:00:00 | ||
| Payback Period Comparing Projects Of Different Length | 00:00:00 | ||
| Payback Period Time Value Of Money Limitation | 00:00:00 | ||
| Net Present Value (NPV) Vs Payback Period | 00:00:00 | ||
| Internal Rate Of Return (IRR) Problem 1 | 00:00:00 | ||
| Internal Rate Of Return (IRR) Problem 2 | 00:00:00 | ||
| Internal Rate Of Return (IRR) Uneven Future Inflows | 00:00:00 | ||
| Net Present Value (NPV) With Negative Future Outflow | 00:00:00 | ||
| Net Present Value (NPV) With Closing Cost | 00:00:00 | ||
| Net Present Value (NPV) Delayed Payments | 00:00:00 | ||
| Net Present Value (NPV) Vs Internal Rate Of Return (IRR) Problem 1 | 00:00:00 | ||
| Net Present Value (NPV) Vs Internal Rate Of Return (IRR) Problem 2 | 00:00:00 | ||
| Profitability Index | 00:00:00 | ||
| Capital Budgeting With Reinvestment Rate Assumption | 00:00:00 | ||
| Modified Internal Rate Of Return (MIRR) | 00:00:00 | ||
| Net Present Value Changing Discount Rate | 00:00:00 | ||
| MACRS Depreciation, Cash Flow, And Net Present Value Problem 1 | 00:00:00 | ||
| MACRS Depreciation, Cash Flow, And Net Present Value Problem 2 | 00:00:00 | ||
| 5 Year MACRS Depreciation, Cash Flow, And Net Present Value | 00:00:00 | ||
| 7 MACRS Depreciation, 10 Year Cash Flow, And Net Present Value | 00:00:00 | ||
| Land And 5 MACRS Depreciation, Cash Flow, And Net Present Value | 00:00:00 | ||
| Sales Of Depreciated Assets And Tax Impact | 00:00:00 | ||
| Section 3 - Excel Problems | |||
| Downloadable Practice Files | 00:00:00 | ||
| Cash Flow Calculation | 00:00:00 | ||
| Cash Flow Impact Of Depreciation Due To Taxes | 00:00:00 | ||
| Cash Flow Impact Of Tax Rate Change | 00:00:00 | ||
| Payback Period | 00:00:00 | ||
| Payback Period Comparing Projects Of Different Length | 00:00:00 | ||
| Payback Period Time Value Of Money Limitation | 00:00:00 | ||
| Net Present Value (NPV) Vs Payback Period | 00:00:00 | ||
| Internal Rate Of Return (IRR) Problem 1 | 00:00:00 | ||
| Internal Rate Of Return (IRR) Problem 2 | 00:00:00 | ||
| Internal Rate Of Return (IRR) Uneven Future Inflows | 00:00:00 | ||
| Net Present Value (NPV) With Negative Future Outflow | 00:00:00 | ||
| Net Present Value (NPV) With Closing Cost | 00:00:00 | ||
| Net Present Value (NPV) Delayed Payments | 00:00:00 | ||
| Net Present Value (NPV) Vs Internal Rate Of Return (IRR) Problem 1 | 00:00:00 | ||
| Net Present Value (NPV) Vs Internal Rate Of Return (IRR) Problem 2 | 00:00:00 | ||
| Profitability Index | 00:00:00 | ||
| Capital Budgeting With Reinvestment Rate Assumption | 00:00:00 | ||
| Modified Internal Rate Of Return (MIRR) | 00:00:00 | ||
| Net Present Value Changing Discount Rate | 00:00:00 | ||
| MACRS Depreciation, Cash Flow, And Net Present Value Problem 1 | 00:00:00 | ||
| MACRS Depreciation, Cash Flow, And Net Present Value Problem 2 | 00:00:00 | ||
| 6 Year Macrs Depreciation, Cash Flow, And Net Present Value | 00:00:00 | ||
| 7 MACRS Depreciation, 10 Year Cash Flow, And Net Present Value | 00:00:00 | ||
| Land And 5 MACRS Depreciation, Cash Flow, And Net Present Value | 00:00:00 | ||
| Sales Of Depreciated Assets And Taxes Impact | 00:00:00 | ||
| 5 Year MACRS Depreciation, WACC, Cash Flow, And Net Present Value | 00:00:00 | ||
| Buy New Fixed Asset Or Keep Old Decision | 00:00:00 | ||
About This Course
Who this course is for:
- Business students
- Business professionals
What you’ll learn:Â
- Explain how to make capital budgeting decisions
- Discuss the common scenarios related to capital budgeting decisions
- Calculate the net present value (NPV) for a capital budgeting decision
- Calculate the internal rate of return (IRR) for a capital budgeting decision
- Calculate the payback period for a capital budgeting decision
- Calculate the modified internal rate of return (MIRR)
- Compare capital budgeting projects
Requirements:Â
- Basic understanding of corporate finance concepts
This course will show how to make capital budgeting decisions from a corporate finance perspective.
We will include many example problems, both in the format of presentations and Excel worksheet problems. The Excel worksheet presentations will include a downloadable Excel workbook with at least two tabs, one with the answer, the second with a preformatted worksheet that can be completed in a step-by-step process along with the instructional videos.
Capital budgeting decisions involve planning for projects and future cash flows extending more than one year into the future. The common example of a capital budgeting decision is the decision to purchase a large piece of equipment that will impact future cash flow for multiple years.
The typical format of a capital budgeting decision often includes a cash out flow at a time period zero, resulting in cash inflows, or reduced outflows due to increased efficiencies, over multiple years.
Because capital budgeting decisions impact cash flows for multiple years, time value of money concepts are used, including present value of one calculation and present value of annuity calculations.
The primary tools used in capital budgeting decisions are the net present value calculation (NPV) and the internal rate of return calculation (IRR). Both of these tools utilize time value of money concepts, and we will spend a lot of time with them.
We will also discuss the payback period calculation and the modified internal rate of return or (MIRR).
Our Promise to You
By the end of this course, you will have learned capital budgeting decisions.
10 Day Money Back Guarantee. If you are unsatisfied for any reason, simply contact us and we’ll give you a full refund. No questions asked.
Get started today and learn more about corporate finance.
Course Curriculum
| Section 1 - Introduction | |||
| Capital Budgeting Decision Overview | 00:00:00 | ||
| Payback Period | 00:00:00 | ||
| Net Present Value (NPV) | 00:00:00 | ||
| Internal Rate Of Return (IRR) | 00:00:00 | ||
| Project Selection Process | 00:00:00 | ||
| Modified Internal Rate Of Return (MIRR) | 00:00:00 | ||
| Fixed Asset Replacement Decision | 00:00:00 | ||
| Section 2 - Practice Problems | |||
| Cash Flow Calculation | 00:00:00 | ||
| Cash Flow Impact Of Depreciation Due To Taxes | 00:00:00 | ||
| Cash Flow Impact Of Tax Rate Change | 00:00:00 | ||
| Payback Period | 00:00:00 | ||
| Payback Period Comparing Projects Of Different Length | 00:00:00 | ||
| Payback Period Time Value Of Money Limitation | 00:00:00 | ||
| Net Present Value (NPV) Vs Payback Period | 00:00:00 | ||
| Internal Rate Of Return (IRR) Problem 1 | 00:00:00 | ||
| Internal Rate Of Return (IRR) Problem 2 | 00:00:00 | ||
| Internal Rate Of Return (IRR) Uneven Future Inflows | 00:00:00 | ||
| Net Present Value (NPV) With Negative Future Outflow | 00:00:00 | ||
| Net Present Value (NPV) With Closing Cost | 00:00:00 | ||
| Net Present Value (NPV) Delayed Payments | 00:00:00 | ||
| Net Present Value (NPV) Vs Internal Rate Of Return (IRR) Problem 1 | 00:00:00 | ||
| Net Present Value (NPV) Vs Internal Rate Of Return (IRR) Problem 2 | 00:00:00 | ||
| Profitability Index | 00:00:00 | ||
| Capital Budgeting With Reinvestment Rate Assumption | 00:00:00 | ||
| Modified Internal Rate Of Return (MIRR) | 00:00:00 | ||
| Net Present Value Changing Discount Rate | 00:00:00 | ||
| MACRS Depreciation, Cash Flow, And Net Present Value Problem 1 | 00:00:00 | ||
| MACRS Depreciation, Cash Flow, And Net Present Value Problem 2 | 00:00:00 | ||
| 5 Year MACRS Depreciation, Cash Flow, And Net Present Value | 00:00:00 | ||
| 7 MACRS Depreciation, 10 Year Cash Flow, And Net Present Value | 00:00:00 | ||
| Land And 5 MACRS Depreciation, Cash Flow, And Net Present Value | 00:00:00 | ||
| Sales Of Depreciated Assets And Tax Impact | 00:00:00 | ||
| Section 3 - Excel Problems | |||
| Downloadable Practice Files | 00:00:00 | ||
| Cash Flow Calculation | 00:00:00 | ||
| Cash Flow Impact Of Depreciation Due To Taxes | 00:00:00 | ||
| Cash Flow Impact Of Tax Rate Change | 00:00:00 | ||
| Payback Period | 00:00:00 | ||
| Payback Period Comparing Projects Of Different Length | 00:00:00 | ||
| Payback Period Time Value Of Money Limitation | 00:00:00 | ||
| Net Present Value (NPV) Vs Payback Period | 00:00:00 | ||
| Internal Rate Of Return (IRR) Problem 1 | 00:00:00 | ||
| Internal Rate Of Return (IRR) Problem 2 | 00:00:00 | ||
| Internal Rate Of Return (IRR) Uneven Future Inflows | 00:00:00 | ||
| Net Present Value (NPV) With Negative Future Outflow | 00:00:00 | ||
| Net Present Value (NPV) With Closing Cost | 00:00:00 | ||
| Net Present Value (NPV) Delayed Payments | 00:00:00 | ||
| Net Present Value (NPV) Vs Internal Rate Of Return (IRR) Problem 1 | 00:00:00 | ||
| Net Present Value (NPV) Vs Internal Rate Of Return (IRR) Problem 2 | 00:00:00 | ||
| Profitability Index | 00:00:00 | ||
| Capital Budgeting With Reinvestment Rate Assumption | 00:00:00 | ||
| Modified Internal Rate Of Return (MIRR) | 00:00:00 | ||
| Net Present Value Changing Discount Rate | 00:00:00 | ||
| MACRS Depreciation, Cash Flow, And Net Present Value Problem 1 | 00:00:00 | ||
| MACRS Depreciation, Cash Flow, And Net Present Value Problem 2 | 00:00:00 | ||
| 6 Year Macrs Depreciation, Cash Flow, And Net Present Value | 00:00:00 | ||
| 7 MACRS Depreciation, 10 Year Cash Flow, And Net Present Value | 00:00:00 | ||
| Land And 5 MACRS Depreciation, Cash Flow, And Net Present Value | 00:00:00 | ||
| Sales Of Depreciated Assets And Taxes Impact | 00:00:00 | ||
| 5 Year MACRS Depreciation, WACC, Cash Flow, And Net Present Value | 00:00:00 | ||
| Buy New Fixed Asset Or Keep Old Decision | 00:00:00 | ||
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