Register Online - Add to Cart
Product ID: 407757EAU
 
Credit & Course Provided by:

Considerations in Capital Budgeting

OnDemand Webinar (87 minutes)

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 it's 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, buy-in from your team, and top-of-mind 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 company's assets current and relevant.

Authors

Wendy Dutenhoeffer

Agenda

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