Investment Accounting (3 op)

Arviointiasteikko

H-5

Oppimateriaalit

Modern Industrial Management, Engwall

Opetusmenetelmät

On this course you will learn about capital investments and investment analysis. Differentiating between project and period issues. Understanding the time value of money concept and opportunity costs. Applying the net present-value (NPV) and the internal -rate - of return (IRR) method. Understanding the value of sensitivity analysis in capital budgeting. Identifying relevant cash flows used in discounting. Applying the payback method and the accounting rate-of - return (ARR) method. Assessing capital budgeting project management issues. Identifying the impact of tax and inflation on investment cash flows. Distinguishing between the real rate of return and the nominal rate of return and recognise risk in investment decisions. Understanding the assumptions made by the NPV and the IRR methods.