Duration
2 weeksWeekly study
5 hours100% online
How it works
How to Make Better Capital Investment Decisions and Recognise Investment Opportunities
How do project launches and investing in different industries help organisations around the world to grow successfully?
That’s where capital investment appraisal comes in. The analysis and evaluation of projects and investment opportunities on the basis of economic, cost and financial data is a crucial building block of these types of investments.
On this course, you’ll have the chance to learn how to determine the financial viability for each and every project under consideration through the exploration and application of different investment appraisal techniques.
You’ll also have the opportunity to explore the payback method and the accounting rate of return, and look at how to make investment decisions.
IRR explained: learn how to compare discounting methods
You’ll be introduced to the internal rate of return, or IRR. This metric is used to estimate the profitability of potential investments. You’ll find out how to use this powerful financial analysis metric and learn how to compare discounting methods.
Compound interest: understanding the time value of money
How does compound interest work? And why is it such a vital concept when it comes to borrowing, saving, or investing?
You’ll unlock the power of compound interest in relation to the net present value (NPV), also known as the ‘time value of money’. This is a basic financial concept that suggests money in the present is worth more than receiving the same sum in the future.
Syllabus
Week 1
Methods used in capital investment appraisal
Getting started
Welcome to Capital Investment Appraisal. Get an introduction to the topics from our course leader and find out what we'll cover this week.
Capital investment decisions
Let's begin our learning journey by examining some typical examples of capital investment decisions and why they are critical for the success of a business.
The payback method
How do companies know when they will get a return on the projects they invest in? Learn more about the payback method in this activity.
Accounting rate of return
In this section we explore the accounting rate of return and how it is calculated. You also get to test your skills using a practical example.
Summary and reflection
Reflect on what you've learned this week and find out what's coming up next week. This is also your chance to ask any questions you have.
Week 2
Discounting methods
Welcome to Week 2
Welcome to the second week of Capital Investment Appraisal. Get an introduction to discounting methods and find out what topics we'll be exploring this week.
Introducing net present value (NPV)
In this section we explore the net present value method and how it is calculated. You also get to test your skills in deciding whether to invest in a project using a practical example.
Internal rate of return (IRR)
As we introduce another method, we explore the IRR, examining how it is used to work out profitablility and exploring its benefits and limitations.
Comparing discounting methods
In this closing section, we take into consideration additional factors when using capital investment appraisal methods and evaluate the NPV and IRR methods.
Summary and reflection
As we bring this short course to a close, you now have an opportunity to consider the various topics of capital investment appraisal we have covered and look ahead to what's next.
When would you like to start?
Start straight away and join a global classroom of learners. If the course hasn’t started yet you’ll see the future date listed below.
Available now
Learning on this course
On every step of the course you can meet other learners, share your ideas and join in with active discussions in the comments.
What will you achieve?
By the end of the course, you‘ll be able to...
- Apply the different methods of appraisal to analyse investment opportunities
- Demonstrate the ability to make appropriate recommendations for investment opportunities
- Compare and critically appraise the methods covered in the course
- Explain the following methods of investment appraisal: payback method, ARR, NPV and IRR
Who is the course for?
This course is designed for anyone looking to build their financial data analysis and interested in using data for business decision making.
It will be of particular interest to people in senior management and leadership roles who lack an accounting background, especially if you wish to learn the skills to help you make better decisions and advance your career.
You can enhance your learning experience by following related courses, designed by Coventry University:
- Financial Statements Unlocked: How to Understand Corporate Finance and Financial Management
- How to Master Financial Statements: Financial Ratio Analysis and Interpretation
- Break-Even Analysis Unlocked: How to Understand the Profit and Loss Statement
- Divisional Performance Measurement: How to Achieve Operational Excellence
Ways to learn | Buy this course | Subscribe & save | Limited access |
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Choose the best way to learn for you! | $54/one-off payment | $244.99 for a whole year Automatically renews | Free |
Fulfill your current learning need | Develop skills to further your career | Sample the course materials | |
Access to this course | tick | tick | Access expires 26 Feb 2025 |
Access to 1,000+ courses | cross | tick | cross |
Learn at your own pace | tick | tick | cross |
Discuss your learning in comments | tick | tick | tick |
Tests to check your learning | tick | tick | cross |
Certificate when you're eligible | Printed and digital | Digital only | cross |
Cancel for free anytime |
Ways to learn
Choose the best way to learn for you!
Subscribe & save
$244.99 for a whole year
Automatically renews
Develop skills to further your career
- Access to this course
- Access to 1,000+ courses
- Learn at your own pace
- Discuss your learning in comments
- Tests to boost your learning
- Digital certificate when you're eligible
Cancel for free anytime
Buy this course
$54/one-off payment
Fulfill your current learning need
- Access to this course
- Learn at your own pace
- Discuss your learning in comments
- Tests to boost your learning
- Printed and digital certificate when you’re eligible
Limited access
Free
Sample the course materials
- Access expires 26 Feb 2025
Find out more about certificates, Unlimited or buying a course (Upgrades) Sale price available until 3 March 2025 at 23:59 (UTC). T&Cs apply. |
Find out more about certificates, Unlimited or buying a course (Upgrades)
Sale price available until 3 March 2025 at 23:59 (UTC). T&Cs apply.
Learning on FutureLearn
Your learning, your rules
- Courses are split into weeks, activities, and steps to help you keep track of your learning
- Learn through a mix of bite-sized videos, long- and short-form articles, audio, and practical activities
- Stay motivated by using the Progress page to keep track of your step completion and assessment scores
Join a global classroom
- Experience the power of social learning, and get inspired by an international network of learners
- Share ideas with your peers and course educators on every step of the course
- Join the conversation by reading, @ing, liking, bookmarking, and replying to comments from others
Map your progress
- As you work through the course, use notifications and the Progress page to guide your learning
- Whenever you’re ready, mark each step as complete, you’re in control
- Complete 90% of course steps and all of the assessments to earn your certificate
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