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.
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
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
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
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 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...
Videos and materials
Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.