Investment Appraisal / Capital Budgeting (CIMA P2 / ACCA FM)

Investment appraisal (especially focusing on net present value)

Created by: Hashan Bellanthuda
Globally renowned lecturer for CIMA and ACCA

What Will I Learn?

• Apply the following for decision-making: a. Relevant cash flows b. Non-financial information
• Explain: a. Investment decision making process b. Discounting c. Capital investments as real options
• Apply the following to evaluate projects: a. Payback b. Accounting rate of return c. IRR d. NPV e. Discounted payback f. MIRR
• Apply capital rationing, sensitivity analysis and asset replacement cycles

Requirements

• Basic knowledge of compounding and discounting

Target audience

• Management Accounting and Financial Management students. Primarily for CIMA P2 and ACCA FM students.