This course is divided into 6 modules that can help you master Investment Appraisal.
You can follow the outline of the course for learning. However, you can also skip some modules if you simply want to learn a specific lesson about investment appraisal.
The modules that you’ll get inside the course include:
Module 1: Introduction and the Fundamentals
This is the first module of the course. In this module, you’ll learn the fundamentals of capital budgeting and the basics of finance.
This course also explains why particular investments appear great at first but are bad down the line.
Module 2: Net Present Value
In this module, you’ll learn why companies across the globe depend on the NPV method when investing a lot of money.
This module will teach you why this capital budgeting method is extremely powerful and versatile. It will also teach you how to manually compute the NPV of projects and how to use Excel to compute it.
Module 3: Internal Rate of Return (IRR)
In this module, you’ll learn the powerful relationship between the cost of capital and the Internal Rate of Return (IRR).
It will also teach you how to estimate the IRR from scratch using various methods. This includes interpolation.
You’ll also learn how to use Excel for computing IRR and Rate functions.
Module 4: Accounting Rate of Return (ARR)
In this module, you’ll learn how simple techniques and strategies aren’t helpful. It explains why they’re extremely risky in investing.
You’ll also learn some of the limitations of this well-known capital budgeting method. At the end of the module, you should be able to distinguish between cash flows and profit.
Module 5: Payback and Discounted Payback
In this module, you will learn why professional investors consider this the easiest capital budgeting method.
This module also contains lessons that will teach you how to estimate when you will make back your initial investment.
In addition to that, this module will also teach you how your payback method is affected by the time value of money.
Module 6: Profitability Index
In this module, you will learn how to pick between two excellent investment opportunities whenever you have limited funds.
This module will also explain why the Profitability Index is perhaps the most useful capital budgeting method out there.
At the end of this module, you should understand the idea behind the formula and the finance fundamentals behind it.