In this introductory course we explore how a company will use Net Present Value calculations to evaluate long term investments and capital budgeting.

Course Key Concepts: Introductory managerial accounting, Capital Budgeting, Internal rate of return, Net Present Value, Time Value of Money.


Other Modules of Introductory Managerial Accounting by Erik Slayter.
1. Introductory Managerial Accounting - Classifying Costs
2. Introductory Managerial Accounting - Job Costing
3. Introductory Managerial Accounting - Cost, Volume-Profit Analysis
4. Introductory Managerial Accounting - Budgeting
5. Introductory Managerial Accounting - Variance Analysis
6. Introductory Managerial Accounting - Capital Budgeting

Learning Objectives
  • Explore and calculate net present value.
  • Identify and interpret net present value results.
  • Discover benefits of using Microsoft Excel.
Last updated/reviewed: August 20, 2023
3 Reviews (19 ratings)

Reviews

4
Anonymous Author
I really enjoyed this overview of NPV. Examples using tables and excel were very helpful. My only complaint is that the last 2 quiz questions were not covered in the material.

5
Anonymous Author
Good explanation of PV, NPV, Present Value Index and salvage value. The examples were clear and the method of presentation was easy to follow.

4
Anonymous Author
A reasonably good course with informative material well-suited for the purpose.

Prerequisites
Course Complexity: Foundational
Basic understanding of financial statements (Introductory Financial Accounting) and the Introductory Managerial Accounting - Variance Analysis course.
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 Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Capital budgeting11:28
  Example - Determining the Present Value15:18
  Net Present Value Method18:38
  Example - Determine NPV and Present Value Index18:44
CONTINUOUS PLAY
  Introductory Managerial Accounting - Capital Budgeting1:04:08
SUPPORTING MATERIAL
  Handouts: Introductory Managerial Accounting - Capital BudgetingPDF
  Practice: Introductory Managerial Accounting - Capital BudgetingPDF/XLSX
REVIEW AND TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam