Capital Budgeting ON DEMAND
Available Until
Your Desk
5.0 Credits
Member Price $145.00
Non-Member Price $167.00
Overview
The decision to invest is a continual challenge, requiring insights into a firm’s strategic direction, bottlenecks, cash flows, and expected risks. The course provides clarity by describing the process flow for capital requests. This course also covers the primary methods for determining whether a proposed investment is acceptable, as well as a number of strategic and risk-based considerations. Lease or buy financing options are also discussed, along with a system of capital budgeting controls. In short, the course provides the knowledge to assemble and operate a reliable capital budgeting system.
Highlights
Overview of capital budgeting. The capital budgeting application form. Capital budgeting strategy. Risk levels. Discounted cash flow analysis. Cash flows. The tax rate. The cost of capital. Cost of capital derivation. Constraint analysis. Other capital budgeting analyses. The lease or buy decision. Capital budgeting controls.
Prerequisites
None.
Designed For
CPAs, CEOs, CFPs, and other financial managers.
Objectives
Recognize the alterations available for improving an investment proposal, why sunk costs are excluded from proposals, and the alternatives for capital rationing. Identify the market conditions in which different types of investments and investment decisions will be made. Identify the basis for discounted cash flow analysis, and how net present value can be used. Identify the elements of the cost of capital, and note how the cost of capital is calculated. Recognize the derivation of throughput, the best ways to improve financial results, and situations in which local optimization is occurring. Recognize the uses to which payback, real option, and complex environment analysis can be used to review investment proposals. Specify the concepts involved in the lease or buy decision process, and the information to include in or exclude from the decision. Identify the issues to be verified as part of the analysis of a capital budgeting request form.
Preparation
None.
Notice
None.
Leader(s):
Leader Bios
Steven Bragg, Western CPE
Steven M. Bragg, CPA, is a full-time book and course author who has written more than 70 business books. He provides Western CPE with self-study courses in the areas of accounting and finance, with an emphasis on the practical application of accounting standards and management techniques. A sampling of his courses include the The New Controller Guidebook, The GAAP Guidebook, Accountants’ Guidebook, and Closing the Books: An Accountant’s Guide. He also manages the Accounting Best Practices podcast.
Steven has been the CFO or controller of both public and private companies and has been a consulting manager with Ernst & Young and an auditor with Deloitte & Touche. He holds an MBA from Babson College, a Master of Finance from Bentley College, and a BA from the University of Maine (summa cum laude).
Non-Member Price $167.00
Member Price $145.00