Capital Budgeting

Course Description

Capital budgeting decisions have long-lasting impacts, and the difference between a good and bad internal investment decision can often be attributed to the capital budgeting process. Several factors make investment decisions using capital budgeting one of the most important functions financial managers are involved with.

• Capital used to fund investment projects is limited and must be carefully allocated across the entire business.
• Investments require the use of a large amount of cash, limiting future financial flexibility.
• If a firm invests too much into a capital project, it could have high depreciation on an asset with limited value.
• If a firm invests too little into a capital project, it may have limited capacity, putting it at a disadvantage versus competitors.

Timing is important, ideally investment projects are completed as close to when they are needed.

This online webinar provides an overview of the concepts of capital budgeting for investment decision-making from the perspective of a finance and accounting organization, emphasizing the integration of cash flows, net present value analysis, risk assessment, and risk management. The course starts with an overview of the capital budgeting process and then reviews the analysis of cash flows during the development, operating, and end of project phases.

This online CPE Finance webinar covers the following key topics:

• Capital Budgeting Process
• Cash Flow Analysis
• Payback and Discounted Payback
• Net Present Value (NPV) and Internal Rate of Return (IRR)
• Risk Analysis in Capital Budgeting
• Evaluating and Ranking Capital Projects
• Risk Mitigation Using Real Options

This course covers the “Investment Decisions” material covered in the Certified Management Accountant (CMA) Part 2 examination.

Learning Objectives

• To identify capital budgeting and the steps undertaken in developing and implementing capital budgets.
• To recognize relevant and irrelevant costs related to capital budgeting.
• To identify and calculate the pre-tax and post-tax cash flows related to the initial investment of a capital project.
• To identify and calculate the pre-tax and post-tax cash flows during the period the project is in operation from revenue, operating expense, and changes to working capital.
• To identify and calculate the pre-tax and post-tax cash flows related to the end of a capital project's life.

Recommended For

• This CE webinar is recommended for CPAs, CFAs, CVAs, CMAs, finance professionals, and others who provide financial guidance to business owners.

Who Should Attend?

Webinar Qualifies For

• 3 CPE Credit of Finance for Certified Public Accountants (CPA-US)
• 3 CPE Credit of Finance for Certified Valuation Analyst (CVA)
• 3 CPE Credit of Planning, Budgeting, and Forecasting for Certified Management Accountants (CMA)
• 3 CPD Credit of Finance for Accredited in Business Valuation (ABV)
• 3 PL Credit for Certificate In Investment Performance Measurement (CIPM)
• 3 CPE Credit of Finance for Certified Business Appraiser/Master Certified Business Appraiser (CBA/MCBA)
• 3 CRE Credit for Certified Corporate FP&A Professional (FPAC)
• 3 CE Credit for Certified Fiduciary & Investment Risk Specialist (CFIRS)
• 3 CE Credit for Certified Wealth Strategist (CWS)
• 3 General Credit for Accountant/Bookeeper
• 3 CPE Credit for Chartered Financial Consultant (ChFC)
• 3 CPE Credit for Financial Services Certified Professional (FSCP)
• 3 CPE Credit for Chartered Advisor in Senior Living (CASL)
• 3 CPE Credit for Chartered Special Needs Consultant (ChSNC)
• 3 CPE Credit for Retirement Income Certified Professional (RICP)
• 3 CPE Credit for Wealth Management Certified Professional (WMCP)
• 3 CPE Credit for Certified Government Financial Manager (CGFM)
• 3 PL Credit for Chartered Financial Analyst (CFA)

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