Considerations in Capital Budgeting

$199.00

SKU: 407757

Description

Learn to utilize the power of capital budgeting and recognize different methods for calculating return on investment for your company.
Capital budgeting is often misunderstood and its easy to see why. Business and thought leaders look at the possibilities while accountants look at the practicalities. What if everyone came together on the same page through strategic planning and revisited the needs and wants on a regular basis? In the world of capital assets there are almost always surprises, but with a solid understanding of capital budgeting, buyin from your team, and topofmind awareness those surprises should be close to nonexistent. This material provides information so you can learn to harness the power of using strategic planning for capital budgeting, how to understand the needs and wants of all parties, and how to keep your companys assets current and relevant.

Date: 2020-07-30 Start Time: 1:00 PM ET End Time: 2:30 PM ET

Learning Objectives

* You will be able to define different types of capital budgeting decisions.

* You will be able to recognize how important strategic planning is in relation to capital budgeting.

* You will be able to describe the different methods for calculating return on investment.

* You will be able to discuss why it is important to include capital projects in your strategic planning.

Definition
• What Exactly Does Capital Budgeting Mean

Types of Capital Budgeting Decisions
• Mutually Exclusive
• Accept-Reject Decisions or Acceptance Rule
• Capital Rationing
• Strategic vs. Accounting

Strategy First • Do Your Homework
• Type of Assets
• Current Asset Condition
• Opportunity Costs
• Critical Thinking
• Expansion Plans
• Cost-Benefit

Steps to Capital Budgeting
• Explore Needs/Opportunities (See Topic #3)
• Estimating Costs
• Calculate Return on Investment

Methods
• Internal Rate of Return (IRR)
• Net Present Value (NPV)
• Profitability Index
• Accounting Rate of Return
• Payback Period

Other Tools
• Discounted Cash Flow
• Breakeven Analysis
• Constraint Analysis

AIPB ,CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Leslie Bender, CIPP/US, CCCO, CCCA, IFCCE-BCA Financial Services, Inc.