Enrolled: 3 students
Duration: 2 Hours
Lectures: 15
Video: 2 Hours
Level: Beginner


capital budgeting and investment decision rule

This course will help to clarify capital budgeting fundamentals, how to calculate Net Present Values, IRR. payback period and which method should be used in project evaluations as all methods have their shortcoming and advantages.

You will also learn what are the shortcomings of different methods apart from being able to calculate.

The course includes some formulas and examples, pls take out your calculators to practice those formulas.

In this course we are going to learn, how do the corporates and managers make decisions related to investment into a new business, new product, new services. Some projects involve lot of money and hence decisions related to investment need to be taken very carefully.

Investment decisions and capital budgeting are required in every business and in every manager’s life.

All managers must understand what are the principles which can be used in evaluating, whether this investment decision is worth or not. There are many situations where you may have to make new investment decisions or you may have to choose between different projects.

This course will help you to do that.

In this course on capital budgeting fundamentals, how to make investment decisions, we are going to learn

  • the npv decision rule
  • how do we use the npv rule
  • what are the alternative investment rules
    • irr
    • payback period or
    • profitability index and other matters
  • when to use different methods
  • how to use them
  • we will be also learning how to choose different projects and
  • how to choose different projects based
    • on the size of the project
    • on the life of the project and

We will be adding more videos based on your feedback and request of topics to learn, so take this course and give us your feedback / questions.

Author of this course is Mr Manish Gupta, a passionate hotelier and finance expert

Other courses taught by Mr Manish are

Analyze Hotel Financial Statements steps you must learn for Rooms Dept

Learn how to analyse and maximize Restaurant Profitability

learn how to Analyze Hotel Financial Statements to improve profitability in 2021

Fundamentals of Hotel Revenue Management you must master in 2021

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Introduction to the Course and Fundamentals

Introduction and Promo video of the course-Capital Budgeting
Basics of Time value of Money
Concept of Compounding, discounting, present values

How to calculate and use Net Present Values (NPV)

NPV method meaning and Decision Rules
Use of NPV with an Example and Practical life Limitations of NPV method
NPV Profile of the project to understand sensitivity

How to calculate payback period

Payback Period Meaning and Calculations
DrawBack of Payback period method

How to calculate Internal Rate of Return (IRR)

IRR, Meaning & method of calculations with limitations
Example to demonstrate NPV and IRR calculation and inconsistent results
Case of Multiple IRRs and MIRR as a attempt to fix the problem

How to choose mutually exclusive investment projects

How to choose between Mutually Exclusive projects
Choosing Projects with Different Life
Choosing Projects in budget constraints

Final Summary of What we have learned in this course

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Capital Budgeting You need to Learn today for evaluating Investment Decisions
$49 $12.99