Capital Budgeting Essentials

Skillsoft presents Capital Budgeting Essentials.

Capital Budgeting Essentials

Course Description

Skillsoft is your trusted global provider of high-quality, innovative, cloud-based learning with all aspects of e-learning covered including Business Skills and Leadership, IT Skills and Certification, Digital Skills and Compliance. Skillsoft engages learners with interactive courses, enlightening videos and practical simulations, allowing for learning in the modality that works best for them.

 

The following courses are included in this purchase:

  • Capital Budgeting Essentials

Course Details:

Access Timeframe

6 month access to course content beginning on date of registration.
Certificate Info:

Type of Certification

Certification of Completion

Format of Certification

Digital and Print

Method of Obtaining Certification

Certificate of Completion can be accessed and printed from the learner's Skillport Account.

Additional Details

The completion certificates can be awarded only for assets that can be marked completed like courses, business impact/challenge series, testprep. The passive assets like books/videos would not be completed and certificates cannot be awarded.

Course Outline

OVERVIEW
Organizations everywhere must decide how to most efficiently spend their capital to continue operations, innovate, and grow. Capital budgeting is a systematic process used to determine how capital – a limited resource – is best allocated to projects that maximize the value of the organization. The projects chosen must align with the organization's greater strategy. This course demonstrates the value of following the capital budgeting process and introduces the three stages in that process: project identification and screening, quantitative assessment, and capital allocation and rationing. The course then focuses on the first stage, exploring how to identify opportunities for capital investment, and subject these initial ideas to preliminary screening based on their feasibility, alignment with organizational strategy, and dependence on other projects.
TARGET AUDIENCE
Finance and nonfinance professionals, functional managers, executives, and all individuals in key roles involved directly or indirectly with the capital budgetary planning and process in an organization
DURATION
1.0 hours
OBJECTIVES
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

OVERVIEW
Organizations rely heavily on quantitative tools such as net present value (NPV) and internal rate of return (IRR) measures to assess which projects to undertake through the capital budgeting process. These tools are based on the time value of money concept, which enables you to calculate the present value of expected project returns and compare projects based on their present value. The course explains the time value of money concept, and shows how to determine net present value and internal rate of return for projects. It explores the strengths and limitations of each of these methods for making decisions, and demonstrates how to use their decision rules to determine which capital investment projects will add the most value to your organization.
TARGET AUDIENCE
Finance and nonfinance professionals, functional managers, executives, and all individuals in key roles involved directly or indirectly with the capital budgetary planning and process in an organization
DURATION
1.0 hours
OBJECTIVES
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

OVERVIEW
When it comes to deciding which new projects to invest in, organizations rely on quantitative tools to objectively compare different proposals. Using measures such as profitability index (PI) and discounted payback period (DPBP), decision makers assess which projects to undertake – the ones that will maximize the value of the organization. These tools account for changes in the value of future cash flows due to the time value of money. This course presents two tools commonly used in the capital budgeting process, profitability index and discounted payback period, and demonstrates how to calculate each. It explores the strengths and limitations of these tools, and describes how organizations use them to guide their investment decisions.
TARGET AUDIENCE
Finance and nonfinance professionals, functional managers, executives, and all individuals in key roles involved directly or indirectly with the capital budgetary planning and process in an organization
DURATION
1.0 hours
OBJECTIVES
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

OVERVIEW
No organization can claim to have an infinite amount of capital for funding projects. Capital rationing is a fact of organizational life that often requires decision makers to make difficult choices between promising investments. In deciding which projects to accept or reject, an organization must not only perform a quantitative assessment to choose the most profitable projects, but also assess a variety of qualitative factors to analyze the impact and feasibility of each project. Quantitative assessment leads to sound capital allocation based on projected cash flows, while qualitative assessment adds an element of risk management, relying on the experience and knowledge of those familiar with the business. Once capital is allocated and projects are implemented, it's important to continue to monitor the projects' progress. A post-implementation audit is an important follow-up, used to detect any deviations from the forecasted results and to gain experience that can be used in making future capital budgeting decisions. The course introduces the process of allocating capital based on qualitative assessment factors, and incorporating other qualitative factors – such as the priority of projects – into the allocation of decisions. It also briefly covers project monitoring and post-implementation auditing.
TARGET AUDIENCE
Finance and nonfinance professionals, functional managers, executives, and all individuals in key roles involved directly or indirectly with the capital budgetary planning and process in an organization
DURATION
1.0 hours
OBJECTIVES
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

OVERVIEW
Generally taken near the end of a program, Final Exam: Capital Budgeting Essentials enables the learner to test their knowledge in a testing environment.
TARGET AUDIENCE
Individuals seeking practice in a testing environment, covering the skills and competencies being measured by the courseware.
DURATION
0.8 hours
OBJECTIVES
Final Exam: Capital Budgeting Essentials
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