COURSECA$182
Making Capital Acquisition Decisions
Basic capital budgeting methods that will help you perform analyses and make decisions about acquiring capital assets.
1 hour 3.7(6 ratings)
-54%
CA$83
About this course
This course examines the methods and techniques that companies use to make capital acquisition decisions. These techniques are actively used in the corporate sector, and can also be useful in not-for-profit and public sector organizations. The instructor will discuss how capital budgeting is different from preparing an operating budget, and why it is so critical when an organization is making decisions about acquiring long term or capital assets. These can include purchasing new equipment or new production facilities, entering new markets, acquiring a new business, selling a company's division, relocating a company, or divesting an entire company. The instructor demonstrates what happens when companies make poor financial decisions, and fail to contemplate their risk and worst case scenarios.
This course will provide an in-depth overview of the main analyses used in capital budgeting, which can allow companies to make well-informed and educated financial decisions. The instructor highlights key questions that business owners or managers should be asking their accountants and demonstrates how to interpret the financial information. Topics include:
- The consequences of making poor financial decisions
- Return on investment
- Risks and cautions
- Capital rationing
- Mutually exclusive investments
- Average accounting rate of return
- Net present value
- Payback period
- Profitability index
- Debt versus equity financing
Sample calculations are demonstrated in detail with examples. This course was designed for non finance professionals who want to gain a basic working knowledge of capital budgeting techniques.
Feedback on this course:
"Great introduction even for non-financial people."
"Excellent, short and concise. Simple but effective methods to narrow in on and make optimal capital investment decisions."
Note: This course was updated in June, 2021.
This course includes:
1 hours on-demand video
Beginner level
No preparation required
Published At May 8, 2020
Certificate of completion
No prerequisites
1 year access
Updated At Jul 18, 2022