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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

  • 2 weeks

  • 5 hours per week

  • Digital certificate when eligible

  • Intermediate level

Find out more about how to join this course

  • Duration

    2 weeks
  • Weekly study

    5 hours
  • 100% online

    How it works
  • Unlimited subscription

    $189.99/yearLearn 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.

Syllabus

  • Week 1

    Methods used in capital investment appraisal

    • Getting started

      Welcome to Capital Investment Appraisal. Get an introduction to the topics from our course leader and find out what we'll cover this week.

    • Capital investment decisions

      Let's begin our learning journey by examining some typical examples of capital investment decisions and why they are critical for the success of a business.

    • The payback method

      How do companies know when they will get a return on the projects they invest in? Learn more about the payback method in this activity.

    • Accounting rate of return

      In this section we explore the accounting rate of return and how it is calculated. You also get to test your skills using a practical example.

    • Summary and reflection

      Reflect on what you've learned this week and find out what's coming up next week. This is also your chance to ask any questions you have.

  • Week 2

    Discounting methods

    • Welcome to Week 2

      Welcome to the second week of Capital Investment Appraisal. Get an introduction to discounting methods and find out what topics we'll be exploring this week.

    • Introducing net present value (NPV)

      In this section we explore the net present value method and how it is calculated. You also get to test your skills in deciding whether to invest in a project using a practical example.

    • Internal rate of return (IRR)

      As we introduce another method, we explore the IRR, examining how it is used to work out profitablility and exploring its benefits and limitations.

    • Comparing discounting methods

      In this closing section, we take into consideration additional factors when using capital investment appraisal methods and evaluate the NPV and IRR methods.

    • Summary and reflection

      As we bring this short course to a close, you now have an opportunity to consider the various topics of capital investment appraisal we have covered and look ahead to what's next.

When would you like to start?

Start straight away and join a global classroom of learners. If the course hasn’t started yet you’ll see the future date listed below.

  • Available now

Learning on this course

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 course 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.

You can enhance your learning experience by following related courses, designed by Coventry University:

Who developed the course?

Coventry University

Coventry secured 5 QS Stars for Teaching and Online Learning in the QS World University Ranking 2020 and has received No. 1 in the world for Massive Open Online Courses in MoocLab’s World University Ranking 2021.

  • Established

    1992
  • Location

    Coventry

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Ways to learn

Choose the best way to learn for you!

Subscribe & save

$189.99 for one year

Automatically renews

Develop skills to further your career

  • Access to this course
  • Access to 1,000+ courses
  • Learn at your own pace
  • Discuss your learning in comments
  • Tests to boost your learning
  • Digital certificate when you're eligible

Cancel for free anytime

Buy this course

$79/one-off payment

Fulfill your current learning need

  • Access to this course
  • Learn at your own pace
  • Discuss your learning in comments
  • Tests to boost your learning
  • Printed and digital certificate when you’re eligible

Limited access

Free

Sample the course materials

  • Access expires 12 Oct 2022

Find out more about certificates, Unlimited or buying a course (Upgrades)

Sale price available until 14 November 2022 at 23:59 (UTC). T&Cs apply.

Find out more about certificates, Unlimited or buying a course (Upgrades)

Sale price available until 14 November 2022 at 23:59 (UTC). T&Cs apply.

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