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How to Make Better Capital Investment Decisions and Recognise Investment Opportunities

Master the techniques of investment appraisals and long-term financial decision-making – from present value to compound interest.

How to Make Better Capital Investment Decisions and Recognise Investment Opportunities
  • Duration2 weeks
  • Weekly study5 hours
  • 100% onlineTry this course for free
  • Included in an ExpertTrackCourse 4 of 5
  • Get full ExpertTrack access$39/month

How do project launches and investing in different industries help organisations around the world to grow successfully?

That’s where capital investment appraisal comes in. The analysis and evaluation of projects and investment opportunities on the basis of economic, cost and financial data is a crucial building block of these types of investments.

On this course, you’ll have the chance to learn how to determine the financial viability for each and every project under consideration through the exploration and application of different investment appraisal techniques.

You’ll also have the opportunity to explore the payback method and the accounting rate of return, and look at how to make investment decisions.

IRR explained: learn how to compare discounting methods

You’ll be introduced to the internal rate of return, or IRR. This metric is used to estimate the profitability of potential investments. You’ll find out how to use this powerful financial analysis metric and learn how to compare discounting methods.

Compound interest: understanding the time value of money

How does compound interest work? And why is it such a vital concept when it comes to borrowing, saving, or investing?

You’ll unlock the power of compound interest in relation to the net present value (NPV), also known as the ‘time value of money’. This is a basic financial concept that suggests money in the present is worth more than receiving the same sum in the future.

What topics will you cover?

  • Introduction to capital investment decisions and their importance
  • Learn how to calculate the payback method, net present value, the accounting rate of return and internal rate of return
  • Critical analysis of discounting cash flow and non-discounting cash flow methods
  • Practice making an investment decision using and comparing the methods covered in the course

What will you achieve?

By the end of the course, you‘ll be able to...

  • Apply the different methods of appraisal to analyse investment opportunities
  • Demonstrate the ability to make appropriate recommendations for investment opportunities
  • Compare and critically appraise the methods covered in the course
  • Explain the following methods of investment appraisal: payback method, ARR, NPV and IRR

Who is the course for?

This ExpertTrack is designed for anyone looking to build their financial data analysis and interested in using data for business decision making.

It will be of particular interest to people in senior management and leadership roles who lack an accounting background, especially if you wish to learn the skills to help you make better decisions and advance your career.

Who developed the course?

Coventry University

Coventry secured gold in the UK Government’s 2017 Teaching Excellence Framework (TEF) and is University of the Year for Student Experience in The Times & The Sunday Times Good University Guide 2019.

  • Established1992
  • LocationCoventry

About this ExpertTrack

Unlock the financial and organisational potential of a business with balanced scorecards and other strategic analysis tools.

Start learning today - free 7-day trial

After your free trial you can:

  • Pay $39 per month to keep learning online
  • Have complete control over your subscription; you can cancel any time
  • Work at your own pace and set your own deadlines at every stage
  • Only pay while you’re learning; the subscription will cancel automatically when you finish
  • Complete online assessments to test your knowledge and prove your skills
  • Earn digital course certificates and a final award that you can share online, with potential employers, and your professional network
  • Keep access to the content of courses you complete even after your subscription ends