NPV and IRR Techniques for CA / CFA / CPA Exams
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NPV and IRR Techniques for CA / CFA / CPA Exams

50+ lectures & case studies for CA IPCC / CFA / CS Final / CMA Inter / MBA Finance / B. Com Final Exams & Professionals
2.8 (5 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
1,581 students enrolled
Last updated 4/2017
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Current price: $10 Original price: $20 Discount: 50% off
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  • 7 hours on-demand video
  • 1 Supplemental Resource
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • By the end of the course, you will be able to evaluate Business Investment Proposals and take a decision.
  • By the end of the course, you will be able to appreciate various Capital Budgeting tools and techniques.
View Curriculum
  • PC / Laptop / Android / iOS
  • Good Internet Connection
  • No Prior Knowledge is required

This course is about Tools and Techniques available for evaluating Business Investment Opportunities.

Yes! Every business takes decisions with regard to Investments in Projects. It may be starting a New Business, Expansion of Existing Business, Modernisation, Backward and Forward Integration, etc.

But, how those decisions are taken by the Business entities? What Financial factors are evaluated before taking those decisions?

This course explains all about.

There are various Capital Budgeting tools available which will evaluate Investment Opportunities and would tell us whether to take up or not to take up the projects and that process is called Capital Budgeting.

Capital budgeting is the process most companies use to authorize capital spending on long‐term projects and on other projects requiring significant investments of capital.

Capital budgeting is also concerned with the setting of criteria about which projects should receive investment funding to increase the value of the firm, and whether to finance that investment with equity or debt capital. Investments should be made on the basis of value-added to the future of the corporation.

Businesses should pursue all projects and opportunities that enhance shareholder value. However, because the amount of capital available at any given time for new projects is limited, management needs to use capital budgeting techniques to determine which projects will yield the most return over an applicable period of time.

Investment evaluation tools ranges from simple Pay Back Period, Accounting Rate of Return to cash discounting tools like NPV, IRR, MIRR, Profitability Index, etc.

The course has been structured in simple way, where in each and every techniques are explained followed by solving of case studies.

Topic covered in the course:

NPV can be described as the “difference amount" between the sums of discounted: cash inflows and cash outflows. It compares the present value of money today to the present value of money in the future, taking inflation and returns into account.


The (IRR) is defined as the discount rate that gives a NPV of zero. It is a commonly used measure of investment efficiency.

Need for Capital Budgeting:

  1. As large sum of money is involved which influences the profitability of the firm making capital budgeting an important task.
  2. Long term investment once made can not be reversed without significance loss of invested capital. The investment becomes sunk and mistakes, rather than being readily rectified,must often be borne until the firm can be withdrawn through depreciation charges or liquidation. It influences the whole conduct of the business for the years to come.
  3. Investment decision are the base on which the profit will be earned and probably measured through the return on the capital. A proper mix of capital investment is quite important to ensure adequate rate of return on investment, calling for the need of capital budgeting.
  4. The implication of long term investment decisions are more extensive than those of short run decisions because of time factor involved, capital budgeting decisions are subject to the higher degree of risk and uncertainty than short run decision

Mandatory Disclosure regarding course contents:

The contents of this course will also be available in

a) Financial Management - A Complete Study

b) Accounting, Finance and Banking - A Comprehensive Study

courses, which are comprehensive in nature. If you have already purchased any of the above two courses, then you need purchase this course.

Who is the target audience?
  • Entrepreneurs
  • MBA Students
  • CA / CFA / CPA / CMA Students
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Curriculum For This Course
55 Lectures
Introduction to Capital Budgeting
8 Lectures 27:32

Capital Budgeting Process

Project Cash Flows

Types of Capital Investment Decisions

Principles for Measuring Project Cash Flows

Capital Budgeting Techniques

Case Study 1 on Measuring Cash Flows

Case Study 2 on Measuring Cash Flows
Pay back Period
5 Lectures 09:03

Pay back period example

Payback Reciprocal

Discounted Pay Back Period Method

Case Study on Pay Back Period Method
Accounting Rate of Return
1 Lecture 04:11
Accounting Rate of Return
8 Lectures 49:24

2 NPV Technique

3 Advantages and Disadvantages of NPV

Case Study on NPV

Case Study on NPV Ranking

3 Case Study on NPV (Cash Flows Derivation)

Case study on NPV of Different Projects

5 Case Study on NPV and Capital Rationing
13 Lectures 01:48:24
IRR Intro

IRR Case Study with Interpolation

2 IRR Introduction

3 Advantages and Disadvantages of IRR

4 Modified IRR

Case study on 1 IRR

Case Study 2 IRR

Case Study 3 IRR ARR NPV and Ranking

Case Study on 4 IRR DPB PI and Ranking

Case Study on 5 PB IRR ARR NPV and Ranking

Case Study on 6 IRR Mutually Exclusive Projects and Reinvestment

Problem 7 NPV and IRR Suitability
Profitability Index
20 Lectures 03:49:26

Case Study on Profitability Index

NPV Case Study

Equivalent Annual Cost CS

NPV Incremental Disc Rate CS

Cashflow computation

NPV Case Study on Tax Savings

NPV Case Study on Tax Savings 2

NPV CS (opportunity Cost)

Cash Flow Perspective

Abandonment Decision

Aggregate Cash Flow Method

Incremental Cash Flow Method

NPV over Different Life

Project and Equity IRR

Replacement Decision

Replacement Analysis Case Study

Replacement Analysis Case Study2

Replacement Analysis Case Study3

Bonus Lecture - Discount Coupon Links for other Courses
9 pages
About the Instructor
CA Raja Natarajan, B.Com., PGDBA, FCA
4.1 Average rating
1,041 Reviews
37,349 Students
80 Courses
Chartered Accountant

I am a Chartered Accountant with tonnes of passion for teaching.

I teach Financial Management & Strategic Financial Management for Chartered Accountancy, Cost and Management Accountancy and Company Secretary students in Ernakulam, India. I also hold Post Graduate Diploma in Business Administration in Finance from Symbiosis, Pune and Bachelors in Commerce, from Loyola College, Chennai.

I worked in State Bank of India as Assistant Vice President - Credit for a period of four years after which i started my Chartered Accountancy Practice. During the stint in State Bank of India, I worked on credit proposals of Mid Corporate Units and gained good experience in Financial Analysis, Risk Assessment, Viability Study, Evaluating business models, Project Finance, Working Capital Management, etc.

I conduct work shops for Entrepreneurs, Chartered Accountancy / Cost and Management Accountancy Students on the topics like Project Finance, Credit Risk Assessment, Entrepreneurship Development, Finance for Non Finance Executives, etc.

I love teaching and i want fundamentals of accounting and finance to reach students and so i am here.