Capital Budgeting and Financial Analysis Course 2020.

Learn how to build a complete Replacement and Expansion capital investment valuation Model from scratch

•Capital budgeting is the process that companies use for decision making on capital expenditure projects. They are those projects with a life of a year and more. Examples could include: Building a new plant, developing a new product, replacing an old manufacturing machine, modifying a supply chain system and introducing new or existing products in new markets. just to name a few.

What you’ll learn

  • Students will learn how to develope the cash flows of capital budgeting projects, how to evaluate, analyze, value, approve and implemente capital budgeting projects in the corporate environment. Students will also learn how to build Capital budgeting models for the different types of projects.

Course Content

  • Introduction –> 2 lectures • 5min.
  • MODULE 1, SOME IMPORTANT BUT MUST-KNOW CAPITAL BUDGETING CONCEPTS. –> 3 lectures • 11min.
  • SECTION 2, CATEGORIES OF CAPITAL BUDGETING PROJECTS –> 2 lectures • 3min.
  • DECISION CRITERIA FOR CAPITAL INVESTMENTS PROJECTS –> 3 lectures • 7min.
  • HOW TO CALCULATE THE DIFFERENT GROUPS OF CASH FLOWS FOR A CAPEX PROJECT –> 1 lecture • 1min.
  • EXPANSION PROJECT EXPLANATION –> 11 lectures • 30min.
  • PRACTICAL APPLICATION FOR A REPLACEMENT PROJECT –> 6 lectures • 20min.
  • IMPORTANT VARIABLES AFECTING PROJECT VALUATION –> 1 lecture • 3min.
  • STEPS TO FOLLOW ON BUILDING A BUSINESS CASE FOR CAPITAL BUDGETING PROJECT –> 1 lecture • 4min.

Capital Budgeting and Financial Analysis Course 2020.

Requirements

  • You must be able to interpret financial processes.

•Capital budgeting is the process that companies use for decision making on capital expenditure projects. They are those projects with a life of a year and more. Examples could include: Building a new plant, developing a new product, replacing an old manufacturing machine, modifying a supply chain system and introducing new or existing products in new markets. just to name a few.

•A capital budgeting project either creates value or destroys value making it very vital for the growth of any company.

•In this course, you are going to learn  how a capital budgeting project is evaluated, analyzed, valued, approved and implemented in a corporate environment. We are also going to show you how capital budgeting models are built in top corporations.

In the first part of the course, we shall teach you the all abouts of capital budgeting. The cash flows that are important for a CAPEX project.

We shall elaborate on important capital budgeting concepts like Opportunity cost, sunk cost, Cost of financing, weighted average cost of capital, Externalities, independent and mutually exclusive projects, salvage Value and project sequencing.

You will have the opportunity to understand the different categories of capital budgeting projects that exists, and the criterias such as net present value (NPV), internal rate of return (IRR), payback period (PBP), discounted payback period and profitability index (PI).

From here, we shall analyze the different groups of cash flows needed in a capital budgeting project valuation which are the initial outlay cash flow, the after-tax operating cash flow, and the terminal value after tax non-operating cash flow.

With a clear understanding of these concepts, we shall build a complete replacement and expansion capital budgeting model from scratch as it is done in the top corporations.

To conclude you shall learn the detail steps to build a business case of a CAPEX PROJECT.