School of Hotel Administration

Making Capital Investment Decisions

Available dates

Dec 4, 2019
USD 769
Jan 1, 2020
USD 769
Jan 29, 2020
USD 769
+13 more options


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About the course

One of the most important aspects of a manager's job is to evaluate the feasibility of new initiatives and to make sound investment decisions. This includes conducting a thorough and reliable analysis using the appropriate financial decision-making tools.

In this course, participants will learn six capital budgeting rules that provide a framework for making sound project investment decisions. Participants will examine how the rules differ from one another, and which rules are most appropriate for different project settings.

Participants in this course will need one of the following financial calculators…

  • Hewlett-Packard 12C
  • Texas Instruments BA II Plus

Key Benefits

Participants who complete this course will be able to...

  • Apply capital budgeting decision rules to make sound financial choices
  • Accurately analyze decisions and projects for financial soundness

Topics Include

Module 1 - Introduction to Capital Budgeting Rules

  • Hurdle Rates and Opportunity Costs
  • The Critical Importance of Capital Budgeting Analysis
  • Return on Invested Capital (ROIC)

Module 2 - Net Present Value

  • Conceptualize the Net Present Value (NPV)
  • Calculate NPV - Fixed Cash Flows

Module 3 - Internal Rate of Return

  • Calculate the Internal Rate of Return (IRR) - Fixed Cash Flows
  • Practice with IRR and NPV

Module 4 - Payback Period

  • Introduction to the Payback Period (PBP)
  • Using PBP
  • What is the Discounted Payback Period (DPBP)?

Module - 5 - Profitability Index and Equivalent Annual Cost

  • Introduction to the Profitability Index (PI) and Equivalent Annual Cost (EAC)

Module 6 - Final Assignments

  • Verify Discussion Participation
  • Write a Memo to the Boss
  • Making Capital Investment Decisions Action Plan

Who should attend

This course is important for managers, supervisors, and team leaders at any level responsible for project planning, purchasing decisions, capital budgeting projects, and other important initiatives for their organization.

Trust the experts

Steven Carvell

Dr. Steven Carvell, a professor of finance at the School of Hotel Administration, has 30+ years of extensive service at the School and University including: Associate Dean of Academic Affairs, Academic Director of the Pillsbury Institute of Entrepreneurship, and the Cornell University Internation...


Scott Gibson

Scott Gibson is the J.E. Zollinger Professor of Finance at the College of William and Mary Mason School of Business. His current research interests include optimal financing strategies for hospitality firms and the effect of institutional investor trading behavior on securities prices. His resear...


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