Capital Budgeting and Investment Analysis

Course Overview

Welcome to EarthTab Business School. My name is Tewodros Haile and I will be your course preceptor for the course,Capital Budgeting And Investment Analysis.

Capital Budgeting and Investment Analysis is a comprehensive and analytically intensive course designed for finance professionals, entrepreneurs, project managers, and corporate decision-makers involved in long-term financial planning and strategic investment decisions. The course equips you with the theoretical principles, quantitative tools, and practical insights needed to evaluate, compare, and select investment projects in a corporate or public sector environment. It aims to deepen understanding of how capital allocation decisions influence value creation, sustainability, competitive advantage, and risk exposure.

The course explores the full spectrum of investment analysis, from project initiation and cash flow estimation to advanced appraisal techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index (PI), Modified Internal Rate of Return (MIRR), and Payback Periods. In addition to traditional evaluation methods, the course addresses risk analysis, real options, inflation, taxation, cost of capital, and strategic project alignment. Real-world case studies are integrated to develop applied competencies in project evaluation across various industries, including manufacturing, infrastructure, technology, energy, and services.

Learning Objectives

Upon successful completion of this course, you will be able to:

1. Understand the foundational principles of capital budgeting and strategic investment decision-making.
   
   

2. Identify and estimate relevant cash flows associated with capital projects.
   
   

3. Apply quantitative techniques (NPV, IRR, PI, Payback, MIRR) to appraise investment opportunities.
   
   

4. Conduct risk and sensitivity analyses to evaluate uncertainty in project outcomes.
   
   

5. Evaluate the cost of capital and apply it as a discount rate for project valuation.
   
   

6. Incorporate tax, inflation, and depreciation effects into investment decisions.
   
   

7. Compare mutually exclusive projects and make optimal capital allocation decisions under constraints.
   
   

8. Utilize real options theory to evaluate managerial flexibility in project execution.
   
   

9. Align investment decisions with corporate strategy, sustainability, and shareholder value.
   
   

10. Interpret capital budgeting results and prepare professional investment reports.
    
    

Target Audience

• MBA students
  
  

• Finance and accounting professionals
  
  

• Investment analysts and portfolio managers
  
  

• Business executives and corporate planners
  
  

• Entrepreneurs and startup founders
  
  

• Government and NGO project managers
  
  

• Development finance specialists
  

Course Tools and Software

• Microsoft Excel for financial modeling
  
  

• Financial calculator (e.g., BA II Plus or HP 12C)
  
  

• Monte Carlo simulations
  
  

• Real options valuation templates
  
  

• Sensitivity/scenario dashboards
  
  

• Case study datasets
  
  

Learning Outcomes

By the end of the course, you will:

• Demonstrate mastery of investment appraisal methodologies
  
  

• Build robust capital budgeting models using spreadsheets
  
  

• Identify the most economically viable and strategically aligned projects
  
  

• Integrate risk and uncertainty into investment decisions
  
  

• Communicate investment recommendations with clarity and analytical support
  
  

• Contribute effectively to capital planning and financial strategy in organizations
  

Career Applications

• Corporate Finance Analyst
  
  

• Investment Banker
  
  

• Strategic Project Manager
  
  

• Financial Controller
  
  

• Government Policy Advisor
  
  

• Development Economist
  
  

• Portfolio Analyst
  

Course Delivery Mode

• Online asynchronous lectures
  
  

• Live weekly webinars and Q&A sessions
  
  

• Downloadable templates and case documents
  
  

• Peer forums and tutor feedback sessions
  
  

• Optional weekend masterclasses with industry experts
  

I LOOK FORWARD TO CONGRATULATING YOU UPON THE COMPLETION OF THIS COURSE.