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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
  • Duration

    2 weeks
  • Weekly study

    5 hours
  • 100% online

    Learn at your own paceHow it works
  • Included in an ExpertTrack

    Course 4 of 5
  • Get full ExpertTrack access

    $39/monthFind out more

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

Prove you're job ready

Highlight the new, job-relevant skills you’ve gained and supplement existing qualifications with a hard-earned, industry-specific digital certificate – plus one for every course within your ExpertTrack.

  • Learn the latest in your chosen industry or subject.
  • Complete each course and pass assessments.
  • Receive certificates validated by the educating organisation.
  • Impress employers with learning outcomes you can add to your CV.
  • Make your career dreams a reality.

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Learning on this course

You can take this self-guided course and learn at your own pace. On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.

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.

  • Established

    1992
  • Location

    Coventry

About this ExpertTrack

Unlock business potential with balanced scorecards, balance sheets, ratio analysis and other strategic financial 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

Learning on FutureLearn

Your learning, your rules

  • Courses are split into weeks, activities, and steps, but you can complete them as quickly or slowly as you like
  • Learn through a mix of bite-sized videos, long- and short-form articles, audio, and practical activities
  • Stay motivated by using the Progress page to keep track of your step completion and assessment scores

Join a global classroom

  • Experience the power of social learning, and get inspired by an international network of learners
  • Share ideas with your peers and course educators on every step of the course
  • Join the conversation by reading, @ing, liking, bookmarking, and replying to comments from others

Map your progress

  • As you work through the course, use notifications and the Progress page to guide your learning
  • Whenever you’re ready, mark each step as complete, you’re in control
  • Complete 90% of course steps and all of the assessments to earn your certificate

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