Capital Budgeting & Investment Decision Rules

Make smarter investment decisions with confidence! Learn to assess project profitability, manage risks, and maximise ROI through professional capital budgeting skills.

Master essential investment decision rules used by top financial analysts and corporate strategists in the UK. Gain practical knowledge in NPV, IRR, and Payback Methods — tools trusted by businesses worldwide.

Capital budgeting is a vital process in corporate finance, enabling businesses to evaluate long-term investments and strategic decisions. This course offers a comprehensive understanding of key investment appraisal techniques like Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period. Whether you're pursuing a career in finance or aiming to improve your decision-making capabilities, this course lays the groundwork for analysing investment options and selecting the most profitable ventures. It is structured with clarity, covering both theoretical foundations and real-world applications used in UK and global financial markets.

What is Included:

• In-depth modules on NPV, IRR, Payback Period, and evaluating projects of varying durations
• Flexible learning – study anytime, anywhere, on any device
• Instructor-led curriculum crafted by financial professionals
• Continuous tutor support and assignment feedback
• Free Certificate upon successful completion

What Makes This Course a Smart Career Move?

Finance professionals in the UK are in high demand, particularly those skilled in capital budgeting and investment analysis. According to Glassdoor and Reed.co.uk, Financial Analysts in the UK earn between £35k to £60k, with senior roles such as Finance Managers reaching £55k to £85k. Companies across sectors—from banking and insurance to energy and technology—require investment-savvy decision-makers to guide them through capital-intensive projects.

By mastering these essential financial tools, you not only increase your employability but also open doors to strategic roles in corporate finance and consulting. Whether you're upskilling or transitioning into finance, this course gives you the analytical edge employers seek.

Enrol today and take control of your financial decision-making future.

Reed Courses Certificate of Completion

Digital certificate - Included

• Section 01: Introduction 19:56

  • 1: 1. Introduction and Promo video of the course-Capital Budgeting 01:24
  • 2: 1.1 Basics of Time value of Money 09:51
  • 3: 1.2 Concept of Componding, discounting, present values 08:41

• Section 02: NPV Method 15:59

  • 4: 2. NPV method meaning and Decision Rules 06:40
  • 5: 2.1. Use of NPV with an Example and Pracical life Limitations of NPV method 05:39
  • 6: 2.2 NPV Profile of the project to understand sensitivity 03:40

• Section 03: Payback Period Method 04:56

  • 7: 3.1 Payback Period Meaning and Calculations 02:01
  • 8: 3.2 DrawBack of Payback period method 02:55

• Section 04: Internal Rate of Return (IRR) 18:48

  • 9: 4.1 IRR, Meaning & method of caluculations with limitations 07:13
  • 10: 4.2 Example to demonstrate NPV and IRR calculation and inconsistent results 04:05
  • 11: 4.3 Case of Multiple IRRs and MIRR as a attempt to fix the problem 07:30

• Section 05: Evaluating Projects in Different Lives 22:18

  • 12: 5.1 How to choose between Mutually Exclusive projects 11:24
  • 13: 5.2 Choosing Projects with Different Life 05:41
  • 14: 5.3 Choosing Projects in budget constraints 05:13

• Section 06: Conclusion 04:25

  • 15: 6 Final Summary of What we have learned in this course 04:25

This course on Capital Budgeting & Investment Decision Rules provides a foundational understanding of how businesses make long-term investment decisions. Learners will explore core financial tools that help assess the feasibility and profitability of projects. Through a structured and practical approach, the course explains NPV, IRR, and Payback methods in detail—methods widely used in UK and international business environments.

With comprehensive modules and practical examples, the course is designed to equip learners with both the theory and application of investment appraisal techniques. Whether you're entering finance, enhancing your professional skillset, or managing your own business investments, the knowledge gained from this course will serve as a long-term asset.

Learning Objectives:

• Understand the principles of capital budgeting and its strategic importance
• Apply the Net Present Value (NPV) method to evaluate project viability
• Use the Payback Period and Internal Rate of Return (IRR) for project comparison
• Assess projects with varying durations and risk profiles
• Make informed investment decisions using industry-standard rules

Why should you take this course?

Investment decisions can make or break a business. This course empowers learners to approach these decisions with analytical precision and confidence. With the UK's ever-evolving economic landscape, businesses rely on individuals with financial forecasting and budgeting expertise. By enrolling, you're not just learning theory — you're gaining skills that are directly transferable to real-world roles in finance, consulting, and strategic planning.

Course Curriculum:

• Module 01: Introduction
• Module 02: NPV Method
• Module 03: Payback Period Method
• Module 04: Internal Rate of Return (IRR)
• Module 05: Evaluating Projects in Different Lives
• Module 06: Conclusion

• Aspiring financial analysts
• Business students and graduates
• Professionals in finance or accounting
• Entrepreneurs managing capital investments
• Anyone interested in strategic financial planning

• No experience required
• Just an internet connection, a compatible device, and willingness to learn

• Financial Analyst – £35k to £60k
• Investment Analyst – £40k to £65k
• Finance Manager – £55k to £85k
• Corporate Finance Consultant – £50k to £90k
• Business Analyst – £40k to £70k

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