Applying Investment Decision Rules for Startups
- 4.6
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Course Summary
Learn how to evaluate and make informed decisions about potential capital investments in this course on Capital Budgeting. Gain the skills to analyze investment opportunities, estimate cash flows, and use various capital budgeting techniques to determine the viability of a project.Key Learning Points
- Understand the importance of capital budgeting in making sound investment decisions
- Learn how to estimate cash flows and analyze investment opportunities
- Explore various capital budgeting techniques, such as net present value and internal rate of return
Job Positions & Salaries of people who have taken this course might have
- Financial Analyst
- USA: $66,000
- India: ₹6,00,000
- Spain: €39,000
- Investment Banker
- USA: $104,000
- India: ₹13,00,000
- Spain: €85,000
- Chief Financial Officer
- USA: $161,000
- India: ₹44,00,000
- Spain: €105,000
Related Topics for further study
- Capital Budgeting Techniques
- Cash Flow Analysis
- Investment Opportunities
- Risk Assessment
- Decision Making
Learning Outcomes
- Ability to evaluate investment opportunities using capital budgeting techniques
- Skill to estimate cash flows and analyze investment risks
- Understanding of the importance of sound decision making in capital investments
Prerequisites or good to have knowledge before taking this course
- Basic understanding of financial statements
- Familiarity with financial ratios and analysis
Course Difficulty Level
IntermediateCourse Format
- Online Self-Paced
- Video Lectures
- Quizzes and Assignments
Similar Courses
- Financial Management
- Investment and Portfolio Management
Related Education Paths
Notable People in This Field
- Aswath Damodaran
- Benjamin Graham
Related Books
Description
In the previous course, you learned financial statement analysis and how to make estimate of future financial status. In this course, you are going to learn capital budgeting. That is, how to make an investment decision. You would like to select the best project among various projects you can take. Then, you need to know the criteria. In this course, you are going to learn investment decision criteria such as NPV and IRR, which are most popular decision rules. Using financial analysis and discounted cash flow method, you can make pro forma financial statement and estimate project cash flows. Then, you apply investment criteria to determine whether to invest or not. After learning how to apply NPV and IRR method to investment decision, you are going to learn how to evaluate NPV estimate and scenario, what-if analyses and break-even analysis. In addition to NPV and IRR, you are going to learn Payback period method and Profitability method to determine whether to invest or not when there is a political risk or capital rationing.
Outline
- Capital Budgeting techniques
- Welcome to This Course
- 1.1 Introduction to Capital Budgeting
- 1.2 Net Present Value (NPV)
- 1.3 Payback Period
- 1.4 Internal Rate of Return
- 1.1 Slide
- 1.2 Slide
- 1.3 Slide
- 1.4 Slide
- Practice Quiz (1.1~1.4)
- Week 1 Quiz
- Project Analysis
- 2.1 Project Cash Flow Principles
- 2.2 Pro Forma Income Statement
- 2.3 Free Cash Flow
- 2.4 Sensitivity Analysis
- 2.1 Slide
- 2.2 Slide
- 2.3 Slide
- 2.4 Slide
- Practice Quiz (2.1~2.4)
- Week 2 Quiz
- Issues in Capital Budgeting
- 3.1 Evaluating Multiple Projects
- 3.2 Comparing NPV and IRR techniques I
- 3.3 Comparing NPV and IRR techniques II
- 3.4 Choosing the Discount Rate
- 3.1 Slide
- 3.2 Slide
- 3.3 Slide
- 3.4 Slide
- Practice Quiz (3.1~3.4)
- Week 3 Quiz
- Real Options in Business Projects
- 4.1 Options Basics
- 4.2 Decision Tree Approach
- 4.3 Black-Scholes Option Pricing Model
- 4.4 Evaluating Projects Using B-S Model
- 4.1 Slide
- 4.2 Slide
- 4.3 Slide
- 4.4 Slide
- Practice Quiz (4.1~4.4)
- Week 4 Quiz
- Final Quiz
Summary of User Reviews
Discover how to make sound financial decisions regarding investment in capital projects in this course on Capital Budgeting. This course has received positive reviews from users for its comprehensive coverage of the topic and practical examples provided throughout the course.Key Aspect Users Liked About This Course
Many users appreciated the practical examples and real-life scenarios used to illustrate the concepts discussed in the course.Pros from User Reviews
- Comprehensive coverage of the topic
- Practical examples and real-life scenarios used to illustrate concepts
- Engaging and interactive course content
- Clear and concise explanations of complex concepts
- Helpful resources provided for further learning
Cons from User Reviews
- Some users found the course content to be too basic
- Limited interaction with instructors or other students
- Lack of hands-on practice opportunities
- No certificate of completion offered for free version
- Some technical issues reported with the online platform
Saeyeul Park
4.6 Raiting
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Applying Investment Decision Rules for Startups
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In the previous course, you learned financial statement analysis and how to make estimate of future financial status. In this course, you are going to learn capital budgeting....
