Description:
This is a course in establishing a capital budgeting process from conducting due diligence through to communicating and facilitating discussions of capital investment opportunities with decision makers. Capital budgeting is a key strategic process that ensures capital is deployed to only those opportunities that have a high probability of meeting or exceeding the expectations for return. It is also a process that ensures that scarce capital resources are deployed to the highest yield opportunities across the organization.

In this course, we will walk through how to develop assumptions, prepare the capital budgeting analysis, and quantify risk using tornado charts and monte-carlo simulation analysis. We will also discuss the financing implications of capital investment opportunities by looking at lease versus buy analysis, a related but often confused part of capital budgeting.

Delivery Method: Online Interactive Self Study

Level: Overview

Prerequisites: None

Advanced Preparation: None

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Author: Blair Cook

Category: Finance

Field of Study: Finance - Technical

Passing Score: 70%

Publication Date: 05/06/2021

Technical Details: Finance: Technical

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Objectives:
1. Identify assumptions that explore and document the range of potential outcomes.
2. Identify and calculate the appropriate discount rate for capital budgeting analysis.
3. Recognize a capital budgeting analysis.
4. Recognize how to prepare a lease versus buy analysis.

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NASBA: Yes

QAS: Yes

CPA: Suitable for all CPAs

IRS: No IRS credit for Enrolled Agents.

Profession Identifiers : CPA