Capital Budgeting Essentials
This self-paced online course examines the decisions that every organization must consider, the most effective way to spend their capital to continue operations, innovate, and grow. Capital budgeting is a systematic process used to determine how capital – a limited resource – is allocated to projects that maximize the value of the organization.
When it comes to deciding which new projects to invest in, organizations rely on quantitative tools such as net present value (NPV), internal rate of return (IRR), profitability index (PI), and discounted payback period (DPBP) measures to assess which projects to undertake through the capital budgeting process. No organization can claim to have an infinite amount of capital for funding projects. Capital rationing is a fact of organizational life, requiring decision makers to make difficult choices between promising investments. When deciding which projects to accept, an organization must not only perform a quantitative assessment to choose the most profitable projects, but also assess a variety of qualitative factors to analyze the impact and feasibility of each project.
CBT Direct’s Online Capital Budgeting Essentials Training, provides a basic knowledge of the capital budgeting world and the particulars behind it. This includes sound capital allocation based on projected cash flow and post-implementation auditing. After taking our online course, the learner should have a better basis on capital budgeting and the importance it holds for the future of a business.
Benefits of CBT Direct’s Online Capital Budgeting Essentials Training
CBT Direct boasts the most beneficial online training on the market. With CBT Direct’s online training, you have the flexibility to study on your schedule, and with the speed and reliability of the internet, CBT Direct’s Capital Budgeting Essentials training course is accessible anywhere you have an internet connection. Convenience finally costs less with CBT Direct - the most affordable online training solution today.
The unique design of CBT Direct’s Capital Budgeting Essentials course emphasizes learner initiative, self-management and experiential learning. CBT Direct’s online course design begins with the definition of user-focused performance objectives and then proceeds to the selection and implementation of instructional strategies and learning activities appropriate for those objectives. This effective instruction model for CBT Direct’s Capital Budgeting Essentials training course ensures the greatest level of comprehension and retention.
Who Benefits from CBT Direct’s Online Capital Budgeting Essentials
CBT Direct’s self-paced online Capital Budgeting Essentials course would be beneficial to finance and non-finance professionals, functional managers, executives, and any individual serving in key roles involved directly or indirectly with the capital budgetary planning and process in an organization.
What Professionals Will Learn from CBT Direct’s Online Capital Budgeting Essentials Training
This self-paced online course examines the value of following the capital budgeting process, identifying the three stages in that process: project identification and screening, quantitative assessment, and capital allocation and rationing. The course then focuses on the first stage, exploring how to identify opportunities for capital investment, and subject these initial ideas to preliminary screening based on their feasibility, alignment with organizational strategy, and dependence on other projects.
CBT Direct's online course explains the time value of money concept, and shows how to determine net present value
and internal rate of return for projects. Students will explore the strengths and limitations of each of these methods
for making decisions, and demonstrates how to use their decision rules to determine which capital investment projects
will add the most value to your organization.
Click here to see a detailed curriculum outline.
This course teaches the two essential tools commonly used in the capital budgeting process, profitability index and discounted payback period, and demonstrates how to calculate each. Learners will examine the strengths and limitations of these tools, and describes how organizations use them to guide their investment decisions.
The course introduces the process of allocating capital based on qualitative assessment factors, and incorporating other qualitative factors – such as the priority of projects – into the allocation of decisions. Finally, CBT Direct's Capital Budgeting Essentials training discusses the benefits of project monitoring and post-implementation auditing.
Capital Budgeting Essentials