This week’s topics
Financial Mathematics for Decision Making
- Compounding and discounting
- Net present value (NPV)
- Payback period analysis
- Evaluating capital investment proposals
- Capital budgeting techniques
- NPV vs. The Payback Method
- NPV IRR Payback period scenarios
What you will be able to do
- 1.2 Perform calculations to inform business decision making.
Activity
Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: perform calculations to inform business decision making.
Study materials
Videos
- Capital budgeting techniques · YouTube · The Finance Storyteller · 34 min · for registered students
- NPV vs. The Payback Method · YouTube · Edspira · 11 min · for registered students
- NPV IRR Payback period scenarios · YouTube · The Finance Storyteller · 7 min · for registered students
Further resources
- Principles of Finance 2e, ch. 16: How Companies Think about Investing · PDF · OpenStax, textbook chapter; pp. 483–508 · for registered students
- Principles of Accounting, Volume 2: Managerial Accounting, ch. 11: Capital Budgeting Decisions · PDF · OpenStax, textbook chapter; pp. 517–564 · for registered students
- Managerial Accounting, ch. 8: How Is Capital Budgeting Used to Make Decisions? · PDF · Saylor Academy, textbook chapter; pp. 472–540 · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.