Time Value of Money & Capital Budgeting – Present Value

Mastering Financial Decision-Making: Time Value of Money & Capital Budgeting for Long-Term Success

Created by: Robert (Bob) Steele
CPA, CGMA, M.S. Tax, CPI

What Will I Learn?

• Analyze the importance of the time value of money in long-term decision-making, demonstrating a deep understanding of its impact and implications.
• Apply various methods, including formulas, tables, and Excel functions, to calculate present value and future value in different scenarios.
• Evaluate capital budgeting decisions using net present value (NPV) analysis, internal rate of return (IRR), and accounting rate of return, considering the time
• Synthesize and compare different decision-making tools, such as payback period and internal break-even time calculations, to make informed long-term decisions.
• Create financial models and perform calculations using spreadsheet software to assess the financial feasibility and profitability of capital projects.
• Evaluate and interpret the results of financial analysis, providing insights into investment opportunities and their potential impact on organizational success.
• Design strategic financial plans considering the time value of money and capital budgeting principles to optimize resource allocation and achieve long-term goal
• Apply critical thinking skills to analyze and solve complex financial problems related to the time value of money and capital budgeting decisions.
• Reflect on ethical considerations in financial decision-making, considering the impact on stakeholders and the broader business environment.

Requirements

• Basic knowledge of accounting principles and terminology, including an understanding of financial statements and basic financial analysis.
• Proficiency in using spreadsheet software, such as Microsoft Excel or Google Sheets, for calculations and data analysis.
• Access to a computer or laptop with a reliable internet connection to participate in online lectures, access course materials, and complete assignments.
• Willingness to engage in hands-on exercises, practical applications, and real-world case studies to enhance learning outcomes.
• Motivation and dedication to actively participate in the course, complete assignments, and actively seek clarification when needed.
• An open mindset and eagerness to learn and apply financial decision-making concepts and tools in a practical context.

Target audience

• Finance professionals seeking to enhance their understanding and application of time value of money and capital budgeting concepts in their decision-making processes.
• Managers and executives responsible for making long-term financial decisions and seeking to improve their financial acumen.
• Business owners and entrepreneurs looking to make informed financial choices and optimize resource allocation for their ventures.
• Undergraduate or graduate students studying finance, accounting, or related fields, who want to deepen their knowledge and practical skills in financial decision-making.
• Anyone with a keen interest in financial decision-making, seeking to develop critical thinking skills and apply them in a business context.