Capital budgeting is a key strategic process that ensures capital is deployed to only those opportunities that have a high probability of meeting or exceeding the expectations for return. It is also a process that ensures that scarce capital resources are deployed to the highest yield opportunities across the organization. This course covers how to establish a capital budgeting process from conducting due diligence to communicating and facilitating discussions of capital investment opportunities with decision makers. 

In this capital budgeting course, we walk through how to develop assumptions, prepare the capital budgeting analysis, and quantify risk using tornado charts and monte-carlo simulation analysis.  We also discuss the financing implications of capital investment opportunities by looking at lease versus buy analysis, a related but often confused part of capital budgeting.

Learning Objectives
  • Discover how to prepare a capital budgeting analysis.
  • Discover how to identify and calculate the appropriate discount rate for capital budgeting analysis.
  • Discover how to prepare a decision package for a capital budgeting decision including a quantification of risk.
  • Identify assumptions that explore and document the range of potential outcomes.
  • Discover how to prepare lease versus buy analysis.
Last updated/reviewed: March 27, 2024
29 Reviews (96 ratings)

Reviews

4
Member's Profile
The course is very interesting. A lot of material is covered in a very short time. It is somewhat like "scratch and sniff". I understood a lot, but implementing what was learned will cost me some time. I did not like the loud music at the beginning and end of each video.
5
Member's Profile
I have listened to may instructors in my CPA CPE quest, this go round. There were several very good courses and presentations available, but Mr. Cook is the most captivating liveliest and most knowledgeable in the of all I have heard. Dennis Callahan, MBA, CPA
5
Anonymous Author
This instructor never disappoints me. There are some good tips on building a capital budget. There is also discussion on some Excel functions that I have never even heard of. The Excel file with formulas included in this course is also very helpful.
5
Member's Profile
This course actually gives information that is helpful in understanding more advance concepts of capital budgeting. Unlike some classes I have taken that only give an overview and no practical knowledge.
5
Anonymous Author
Another great course from Blair Cook in which he covers a lot of material and touches upon many different financial concepts and calculations. This is a great over-view of capital budgeting.
5
Member's Profile
Hard Core course that requires active learning and participation.I took it twice to review and understand concepts.More attention paid to course rewards more knowledge and depth of topics.
3
Anonymous Author
The information was good, but I didn't care for the enthusiastic cadence of the presenter. I'm sure he was trying to keep dry material interesting, but I found it distracting.
5
Member's Profile
Very helpful information in order to improve capital budgeting decisions. There was enough information given that you can explore more in-depth after the class.
5
Anonymous Author
This is a great overview for some advanced topics for capital budgeting. Seems very applicable for large investment acquisitions.
5
Anonymous Author
Interesting look at capital budgeting. Discusses some analyses you can do and the assumptions they rely on for capital budgeting.
5
Member's Profile
great speaker - clear points. Wish the course were longer and went into more detail on the points that were covered quickly.
5
Anonymous Author
The instructor always does a great job explains the material. He was enthusiastic and conveyed the material clearly.
5
Member's Profile
This helped me understand a lot of finance terms I have struggled with. Great presentation by the instructor too.
5
Member's Profile
Great presentation, succinct, clear, to the point Slides clean, not cluttered with too much info, to the point
4
Anonymous Author
It was a lot of high finance concepts packed into an hour, but will be something I definitely refer back to.
4
Member's Profile
Liked the review. Those wanting to create capital budgets and communicate them properly will benefit.
5
Anonymous Author
Excellent training. Covered complicated material in a concise presentation and was very informative.
5
Anonymous Author
This course is good,he assisted me to understand some calculation I have forgotten
5
Anonymous Author
Blair Cook provides insightful and practical knowledge for a finance professional
4
Member's Profile
So much material in 1 hour. Think it would be beneficial to break into 2 lessons.
Member's Profile
Covers a lot of ground and terms. Seemed more theory than real world.
4
Anonymous Author
What surprised me is how detailed the material was and relevant.
5
Anonymous Author
Good review of basic financial maangement
5
Anonymous Author
Good course for first year MBA students.
5
Anonymous Author
great insight into capital budgeting.
4
Member's Profile
very useful to my work.
4
Anonymous Author
Overall good course.
5
Anonymous Author
Great content.
4
Anonymous Author
Thanks
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Prerequisites
Course Complexity: Advanced

Prerequisite: Previous experience in finance

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
  Course Overview CPE
Course Syllabus
INTRODUCTION AND OVERVIEW
  6:08PREVIEW: Introduction to Advanced Capital Budgeting
Analysis that Improves Long-term ROI
  Developing Robust Assumptions9:24
  Discount Rate8:00
  Capital Budget Walkthrough14:51
  Communicating and Facilitating a Capital Budget Decision9:44
  Financing Investment Decisions4:49
CONCLUSION
  Course Wrap-up1:59
Continuous Play
  Advanced Capital Budgeting: Analysis that Improves Long-term ROI54:58
SUPPORTING MATERIALS
  Slides: Advanced Capital BudgetingPDF
  Advanced Capital Budgeting Glossary/IndexPDF
  Excel SchedulesXLSX
REVIEW & TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam