How to Make Better Capital Investment Decisions and Recognise Investment Opportunities

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2 weeks
5 hours per week
Digital certificate when eligible
Intermediate level

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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

$39.99/month

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

$109/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

Continue & Upgrade

Limited access

Free

Sample the course materials

Access expires 3 May 2024

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

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