Fundamentals of
Capital Budgeting

Purpose and Scope: The “Fundamentals of Capital Budgeting” course aims to provide a comprehensive understanding of capital budgeting techniques and their applications in real-world financial decision-making. This course will cover essential methods like Payback, Adjusted Payback, IRR, NPV, and FCF, culminating in a practical case study to consolidate learning.

Duration: 5 hours

Pre-Requisite:

• Interest Rates Dynamics
• Time Value of Money

Course Contents:

• Payback Period
• Adjusted Payback Period
• Internal Rate of Return (IRR)
• Net Present Value (NPV)
• Free Cash Flow (FCF)
• Case Study: Real-world Application of Capital Budgeting Techniques

In today’s economic and financial landscape, making informed capital investment decisions is more crucial than ever. The purpose of this course is to equip participants with the knowledge and skills necessary to evaluate potential investments and their long-term impacts on a business. By understanding and applying various capital budgeting techniques, participants will be able to make decisions that align with their organization’s strategic goals and financial health.

The global economy is increasingly complex, with rapid technological advancements and fluctuating market conditions. This course positions itself as an essential learning tool for navigating these complexities. Participants will learn to analyze investment opportunities critically, ensuring that resources are allocated efficiently and effectively. This ability is vital for maintaining competitive advantage and achieving sustainable growth in a dynamic market.

Moreover, the importance of capital budgeting extends beyond large corporations to small and medium-sized enterprises (SMEs) and startups. For these entities, effective capital budgeting can mean the difference between success and failure. By the end of this course, participants will not only understand the theoretical underpinnings of capital budgeting but also gain practical insights into its application in various business contexts, preparing them to handle financial challenges with confidence.

Participants in the “Fundamentals of Capital Budgeting” course can expect several key benefits:

• Enhanced Decision-Making Skills: Gain the ability to make informed capital investment decisions based on rigorous financial analysis.
• Comprehensive Knowledge: Understand and apply various capital budgeting techniques such as Payback Period, Adjusted Payback Period, IRR, NPV, and FCF.
• Practical Application: Engage in a case study that simulates real-world capital budgeting scenarios, providing hands-on experience.
• Strategic Insight: Learn to align capital investment decisions with organizational goals, ensuring long-term financial stability and growth.
• Career Advancement: Equip yourself with essential skills that are highly valued in finance-related roles, enhancing your professional profile.

This course is designed for a diverse audience, including students, entrepreneurs, executives with prior understanding of Time Value of Money and Interest Rate Dynamics (see the pre-requisite in Overview section).

Students: For students, particularly those studying finance, business, or economics, this course provides a foundational understanding of capital budgeting that is crucial for academic and career success. It bridges the gap between theoretical knowledge and practical application, preparing them for roles in financial analysis, corporate finance, and investment banking.

Entrepreneurs: Entrepreneurs often face the challenge of making significant investment decisions with limited resources. This course equips them with the tools to evaluate potential investments rigorously, ensuring that their capital is allocated to projects that will yield the highest returns. By understanding capital budgeting techniques, entrepreneurs can better manage their financial risks and drive their businesses toward growth and profitability.

Executives and Middle Management: For executives and middle management professionals, especially those with little or no finance background, this course demystifies the complex concepts of capital budgeting. It empowers them to participate in strategic discussions and decision-making processes effectively. Understanding how to evaluate and prioritize investment projects is essential for these professionals to contribute to their organization’s financial strategy and achieve its long-term objectives.

The course fee is $115 per person. The fee includes live Zoom sessions and access to recorded sessions for review.

1. Format: Available online to accommodate different learning preferences and logistical needs.
2. Conditions:
   • Prior registration is required to secure a spot in the program.
   • A minimum number of participants is needed to run in-person sessions.
   • Payment details and deadlines to be communicated upon registration.
   • Cancellation and refund policies to be specified in the registration agreement.

1. Setting Expectations: At the beginning of the program, we work with participants to clearly outline their goals and expectations. This involves an initial assessment where we discuss the specific skills and knowledge they hope to gain. By setting these clear expectations, we ensure that our training is aligned with the participants’ and the organization’s objectives from the outset.

2. Ongoing Assessment: Throughout the program, we engage in continuous feedback loops with participants. Regular check-ins, interactive discussions, and formative assessments help us gauge progress and make any necessary adjustments. This ongoing dialogue ensures that the training remains relevant and responsive to participants’ needs.

3. Measuring Achievement: At the conclusion of the program, we conduct a comprehensive evaluation to compare the initial expectations with the outcomes achieved. Participants provide feedback on their learning experience, and we assess the extent to which their goals have been met. This final assessment not only validates the success of the program but also provides valuable insights for future improvements.

Upon successful completion of the course, participants will be awarded a certificate that recognizes their dedication and achievement. This certificate serves as a formal acknowledgment of the skills and knowledge gained throughout the program. It not only highlights the participant’s commitment to professional development but also enhances their credentials within the industry. Our certificates are designed to reflect the rigorous training and comprehensive curriculum that participants have undergone, making them a valuable addition to any professional portfolio.

Issuing certificates also provides tangible evidence of the training’s effectiveness for organizations. It allows employers to verify that their employees have attained the necessary competencies and are equipped to apply their new skills in the workplace. By offering certification, we ensure that both individuals and organizations can confidently showcase their investment in high-quality training and continuous improvement.