Module 13

Capital Investment Analysis

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13.0 A Brief Look inside Capital Investment Analysis

A peek inside the module where you will first learn why and when you should use techniques before the formulas and Excel functions.

13.1 Overview of Capital Investment Analysis

How Capital Budgeting fits into the process frameworks and a one page overview of the key issues and terminology focusing on the methods for evaluating capital investments.

13.2 Payback Method

Learn and practice this method and when to and not to use it.

13.3 Calculating Cash Flow

A straightforward model to convert accrual accounting to cash flow forecasting. Practice on the live Excel worksheet.

13.4 Time Value of Money Concepts

The tables are old school, but we show you how they were built using the formula in a live Excel sheet.

13.5 Net Present Value and Internal Rate of Return Methods

The key to this chapter is on one live Excel sheet that puts it all together.

13.6 Capital Rationing and Profitability Index

The final method shows how to pick between two acceptable projects when you can only do one.

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