Time Value of Money & Capital Budgeting - Present Value
4.0 (75 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
22,199 students enrolled

Time Value of Money & Capital Budgeting - Present Value

Present value and future value calculations applied to larger dollar amount decisions comparing use of Excel, tables...
4.0 (75 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
22,199 students enrolled
Last updated 5/2019
English
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Current price: $139.99 Original price: $199.99 Discount: 30% off
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This course includes
  • 11 hours on-demand video
  • 35 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Assignments
  • Certificate of Completion
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What you'll learn
  • Core managerial accounting concepts and objectives
  • Time value of money
  • Present value of a single amount and annuity
  • Future value of a single amount and annuity
  • Capital budgeting including decision making techniques for decision with large dollar amount that affect multiple time periods.
  • How to calculate and apply the payback period to capital budgeting decisions
  • How to apply the accounting rate of return calculation to capital budgeting decisions
  • How to use net present value (NPV) calculations to make long term decisions considering time value of money
  • How to use internal rate of return (IRR) calculations to make long term decisions considering time value of money
  • How to use internal break-even time calculations to make long term decisions considering time value of money
Requirements
  • Understanding of basic accounting terms
Description

Time value of money and capital budgeting decision is an excellent course for anybody who needs to consider longer-term decisions that require us to understand the time value of money. We will learn the time value of money concepts like present value and future value using multiple methods, including formulas, tables, and Excel functions. We will format the data in many ways and have many examples using Excel to calculate present value.

The course will review core managerial accounting concepts and objectives so that we get into a managerial accounting mindset as opposed to a financial accounting mindset.

We will describe, calculate, and apply the time value of money concepts. Time value of money is a core concept useful to both business and personal decisions and capital budgeting decisions, decisions of larger dollar amounts that affect multiple periods, provide great tools and scenarios for learning the time value of money concept.

The course will explain the present value of a single amount and present value of an annuity, describing multiple ways they can be calculated including formulas, tables, and Excel functions.

We will discuss the future value of a single amount and future value of an annuity, explaining multiple ways they can be calculated including formulas, tables, and Excel functions.

The course will apply time value of money and other decision-making tools to capital budgeting decisions. Capital budgeting decisions are generally larger dollar amount decisions that affect multiple periods into the future and therefore, often require us to consider the time value of money. We will run multiple scenarios of capital budgeting decisions what are great tools to learn the concept of the time value of money.

We will cover how to calculate and apply the payback period to capital budgeting decisions, the payback period being the time period at which or initial investment will be returned.

The course will discuss how to apply the accounting rate of return calculation to capital budgeting decisions.

We will describe how to use net present value (NPV) calculations to make long term decisions considering the time value of money. The net present value calculation is the primary tool we use that does take into consideration the time value of money with regards to capital budgeting decision making, and therefore we will have many examples of the NPV calculation.

The course will explain how to use the internal rate of return (IRR) calculations to make long term decisions considering the time value of money. The internal rate of return is another core concept related to capital budgeting decisions and is related to the NPV. We will compare the IRR and the NPV in detail.

We will analyze how to use internal break-even time (BET) calculations to make long term decisions considering the time value of money.

Who this course is for:
  • Accounting students
  • Business owners & professionals
  • Anyone who whats to learn accounting
Course content
Expand all 129 lectures 11:08:32
+ Managerial Accounting Overview
19 lectures 01:14:40
2 Managerial Accounting Overview
00:21
PDF - 10 Managerial Accounting Introduction
00:08
10 Managerial Accounting Introduction
13:03
PDF - 20 Cost Classifications
00:08
20 Cost Classifications
09:31
PDF - 30 Product Costs & Period Costs.
00:08
30 Product Costs & Period Costs
16:25
PDF - 40 Prime Costs & Conversion Costs
00:08
40 Prime Costs & Conversion Costs
05:35
PDF - 50 Manufacturer's Balance Sheet
00:08
50 Manufacturer's Balance Sheet
03:15
PDF - 60 Manufacturer's Income Statement
00:08
60 Manufacturer's Income Statement
08:49
PDF - 70 Manufacturing Activities Flow
00:08
70 Manufacturing Activities Flow
07:51
PDF - 80 Just In Time (JIT) Manufacturing
00:08
80 Just In Time (JIT) Manufacturing
02:58
Multiple choice questions 2
05:32
Accounting Comic Break
00:16
+ Payback Period & Accounting Rate of Return
7 lectures 40:04
3 Payback Period & Accounting Rate of Return
00:47
PDF - 210 Payback Period, Accounting Rate of Return, & Net Present Value
00:08
210 Payback Period, Accounting Rate of Return, & Net Present Value
17:13
Excel Worksheet Download
00:05
Worksheet - 210 Payback period, accounting rate of return net present value of p
17:13
Multiple choice questions 3
04:22
Accounting Comic Break
00:16
+ Present Value of A Single Amount
11 lectures 51:27
4 Present Value of A Single Amount
00:40
PDF - 350 Present Value
00:08
350 Present Value
16:37
Excel Worksheet Download
00:05
Worksheet 350 Present Value
18:52
PDF - 352 Present Value Months as Period
00:08
352 Present Value Months as Period
03:58
Excel Worksheet Download
00:05
Worksheet - 352 Present Value Months
04:57
Multiple choice questions 4
05:42
Accounting Comic Break
00:15
+ Future Value of A Single Amount
15 lectures 59:48
5 Future Value of A Single Amount
01:09
PDF - 360 Future Value
00:08
360 Future Value
12:41
Excel Worksheet Download
00:05
Worksheet - 360 Future Value
15:16
PDF - 362 Future Value Months As Period
00:08
362 Future Value Months As Period
03:56
Excel Worksheet Download
00:05
Worksheet - 362 Future Value Months
03:17
PDF - 363 Future Value vs Present Value
00:08
363 Future Value vs Present Value
06:13
Excel Worksheet Download
00:05
Worksheet - 363 Present Value vs Future Value
10:54
Multiple choice questions 5
05:27
Accounting Comic Break
00:16
+ Present Value of An Annuity
11 lectures 37:43
6 Present Value of An Annuity
01:16
PDF - 365 Present Value Annuity
00:08
365 Present Value Annuity
13:50
Excel Worksheet Download
00:05
Worksheet - 365 Present Value Annuity
08:30
PDF - 366 Present Value Annuity Months as Period
00:08
366 Present Value Annuity Months as Period
03:23
Excel Worksheet Download
00:05
Worksheet - 366 Present Value Annuity Months
04:28
Multiple choice questions 6
05:35
Explain why capital budgeting decisions are riskier than most business decisions.
Discussion Question 1
1 question
Accounting Comic Break
00:15
+ Future Value of An Annuity
11 lectures 32:51
7 Future Value of An Annuity
01:40
PDF - 367 Future Value Annuity
00:08
367 Future Value Annuity
11:27
Excel Worksheet Download
00:05
Worksheet - 367 Future Value Annuity
06:55
PDF - 368 Future Value Annuity Months
00:08
368 Future Value Annuity Months
03:55
Excel Worksheet Download
00:05
Worksheet - 368 Present Value Annuity Months
03:12
Multiple choice questions 7
05:01
Discuss the concept of time value of money and how it relates to capital budgeting.
Discussion Question 2
1 question
Accounting Comic Break
00:15
+ Present & Future Value Cash Flow Examples
11 lectures 01:09:04
8 Present & Future Value Cash Flow Examples
01:48
PDF - 375 Present Value Cash Flow Examples
00:08
375 Present Value Cash Flow Examples
14:05
Excel Worksheet Download
00:05
Worksheet - 375 Present Value Practice Data
23:29
PDF - 385 Future Value Cash Flow Examples
00:08
385 Future Value Cash Flow Examples
09:02
Excel Worksheet Download
00:05
Worksheet - 385 Future Value Data Sets
14:17
Multiple choice questions 8
05:42
Describe the concept of a hurdle rate and how it is used.
Discussion Question 3
1 question
Accounting Comic Break
00:15
+ Introduction to Present Value Terms Used In Capital Budgeting
7 lectures 34:51
9 Introduction to Present Value Terms Used In Capital Budgeting
01:25
PDF - 390 Present Value Terms Used In Capital Budgeting
00:08
390 Present Value Terms Used In Capital Budgeting
08:00
Excel Worksheet Download
00:05
Worksheet - 390 Present Value Terms For Capital Budgeting
18:10
Multiple choice questions 9
06:47
Explain the calculation of break-even time and how it is used.
Discussion Question 4
1 question
Accounting Comic Break
00:16
+ Net Present Value (NPV)
16 lectures 01:57:08
10 Net Present Value (NPV)
01:18
PDF - 409 Net Present Value Assumptions
00:08
409 Net Present Value Assumptions
02:05
PDF - 410 Net Present Value Calculation 2500 Part 1
00:08
410 Net Present Value Calculation 2500 Part 1
10:05
411 Net Present Value Calculation 2500 Part 2
11:09
Excel Worksheet Download
00:05
Worksheet - 409 Net present value - Excel (1)
19:31
Excel Worksheet Download
00:05
Worksheet - 411 Pay Back Accounting RR NPV
33:45
Excel Worksheet Download
00:05
Worksheet - 412 Pay Back Accounting RR NPV 2
19:17
Excel Worksheet Download
00:05
Worksheet - 413 Required return on investment
15:27
Multiple choice questions 10
03:40
Describe the net resent value method of comparing investments.
Discussion Question 5
1 question
Accounting Comic Break
00:15