Crash Course on NPV & IRR Techniques in Financial Management

About this course

This course is about Tools and Techniques available for evaluating Business Investment Opportunities. Yes! Every business takes decisions with regard to Investments in Projects. It may be starting a New Business, Expansion of Existing Business, Modernisation, Backward and Forward Integration, etc. But, how those decisions are taken by the Business entities? What Financial factors are evaluated before taking those decisions? This course explains all about. There are various Capital Budgeting tools available which will evaluate Investment Opportunities and would tell us whether to take up or not to take up the projects and that process is called Capital Budgeting. Capital budgeting is the process most companies use to authorize capital spending on long‐term projects and on other projects requiring significant investments of capital. Capital budgeting is also concerned with the setting of criteria about which projects should receive investment funding to increase the value of the firm, and whether to finance that investment with equity or debt capital. Investments should be made on the basis of value-added to the future of the corporation. Businesses should pursue all projects and opportunities that enhance shareholder value. However, because the amount of capital available at any given time for new projects is limited, management needs to use capital budgeting techniques to determine which projects will yield the most return over an applicable period of time. Investment evaluation tools ranges from simple Pay Back Period, Accounting Rate of Return to cash discounting tools like NPV, IRR, MIRR, Profitability Index, etc. The course has been structured in simple way, where in each and every techniques are explained followed by solving of case studies. Topic covered in the course: