Capital Budgeting (CPE Course)

CPE Credit: 5 hours

Course Type: Downloaded PDF materials with online test

Price (with PDF Textbook): $50

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Course Description
The decision to invest is a continual challenge, requiring insights into a firm's strategic direction, bottlenecks, cash flows, and expected risks. The Capital Budgeting course provides clarity by describing the process flow for capital requests. It also covers the primary methods for determining whether a proposed investment is acceptable, as well as a number of strategic and risk-based considerations. Lease or buy financing options are also discussed, along with a system of capital budgeting controls. In short, the course provides the knowledge to assemble and operate a reliable capital budgeting system.

Author: Steven Bragg

Course Number: FN1019

Table of Contents

Chapter 1. Overview of Capital Budgeting
Chapter 2. Capital Budgeting Strategy
Chapter 3. Discounted Cash Flow Analysis
Chapter 4. The Cost of Capital
Chapter 5. Constraint Analysis
Chapter 6. Other Capital Budgeting Analyses
Chapter 7. The Lease or Buy Decision
Chapter 8. Capital Budgeting Controls 

Learning Objectives

  • Recognize the alterations available for improving an investment proposal, why sunk costs are excluded from proposals, and the alternatives for capital rationing.

  • Identify the market conditions in which different types of investments and investment decisions will be made.

  • Identify the basis for discounted cash flow analysis, and how net present value can be used.

  • Identify the elements of the cost of capital, and note how the cost of capital is calculated.

  • Recognize the derivation of throughput, the best ways to improve financial results, and situations in which local optimization is occurring.

  • Recognize the uses to which payback, real option, and complex environment analysis can be used to review investment proposals.

  • Specify the concepts involved in the lease or buy decision process, and the information to include in or exclude from the decision.

  • Identify the issues to be verified as part of the analysis of a capital budgeting request form.

Level: Overview

Instructional Method: QAS Self-Study

NASBA Category: Finance

Prerequisites: None

Advance Preparation: None

Latest Review Date: April 2024

Program Registration Requirements: Click on "Purchase Course" near the top of this page to pay for and access the course. You will then be able to download the course as a PDF file, then take an on-line examination, and then download a certificate of completion if you pass the examination.

Program Refund Policy: For more information regarding administrative policies concerning complaints, refunds, and other matters, see our policies page.

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AccountingTools, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have the final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

The NASBA sponsor identification number for Accountingtools, Inc. is 115881.

AccountingTools is an IRS Approved Continuing Education Provider. We are compliant with the requirements for continuing education providers (as described in sections 10.6 and 10.9 of the Department of Treasury’s Circular No. 230 and in other IRS guidance, forms, and instructions). Our IRS Approved Continuing Education Provider number is 72821.