Course Category

Capital Budgeting Overview - Online

This module examines the analytical framework that financial managers use to evaluate projects, what makes a project sufficiently profitable for the firm, and how they choose among mutually exclusive projects and handle special circumstances.

This course replicates the content from lesson 4 of Corporate Finance - Online

This is an asynchronous eLearning course that can be accessed 24/7 from any internet enabled computer. Subscription period for this course is 90 days.

• Recognize the advantages of using Net Present Value versus Internal Rate of Return to calculate the value of a project.
• Recall when and how to use the profitability index to rank the value of a project.
• Determine the value of projects that have different life spans using the approaches called lowest common denominator and annual equivalency cash flow.
• Recognize the formulas for the after-tax weighted average cost of capital and capital asset pricing model and how they are used to determine the cost of capital.
• Identify the formulas for calculating cash flows resulting from investments and how they are used to determine the profitability of a project.