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Level 5 Diploma in Accounting and Business

Discounted Cash Flow and Investment Reporting

AB504 · Financial Reporting — Week 7 of 16

CourseAB504
Week7 of 16
SemesterII
TutorOnline in the course chat

This week’s topics

Discounted Cash Flow and Investment Reporting

  1. Net present value (NPV)
  2. Internal rate of return (IRR)
  3. Risk and sensitivity analysis
  4. Investment appraisal reports
  5. CIMA P2 Investment appraisal under uncertainty - Sensitivity analysis
  6. Capital budgeting techniques

What you will be able to do

  • 3.1 Apply different methods of investment appraisal to business decision-making.
  • 3.2 Assess the impact of an investment proposal.
  • 3.3 Prepare a report on the outcome of an investment appraisal.

Activity

Start with this week’s 2 videos, then: Seminar, guided reading and a short written task: apply different methods of investment appraisal to business decision-making.

Study materials

Videos

  • CIMA P2 Investment appraisal under uncertainty - Sensitivity analysis · YouTube · OpenTuition · 30 min · for registered students
  • Capital budgeting techniques · YouTube · The Finance Storyteller · 34 min · for registered students
  • Understanding Net Present Value · YouTube · Gresham College · 63 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
  • Managerial Accounting, ch. 8: How Is Capital Budgeting Used to Make Decisions? · PDF · Saylor Academy, textbook chapter; pp. 472–540 · 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
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
Week 6Midterm
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Admitted students ask questions on this week’s page in the student portal: an AI assistant trained on the course answers first, and during the course’s timetabled classes Connect to your tutor brings your tutor into the chat, who may start a call if needed.

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Course plan
  • Week 1: Financial Reporting Frameworks
  • Week 2: Budgeting Approaches and Strategy
  • Week 3: Variance Analysis and Budget Monitoring
  • Week 4: Principles and Preparation of Control Accounts
  • Week 5: Control Account Analysis and Internal Reporting
  • Week 6: Traditional Investment Appraisal
  • Week 7: Discounted Cash Flow and Investment Reporting
  • Midterm: Midterm evaluation
  • Week 9: Financial Analysis: Profitability and Liquidity
  • Week 10: Financial Analysis: Efficiency and Solvency
  • Week 11: Communicating Financial Information
  • Week 12: Applying Financial Reporting in practice: case studies
  • Week 13: Assignment workshop: research, planning and referencing
  • Week 14: Assignment workshop: drafting, feedback and improvement
  • Week 15: Review and coursework completion
  • Final: Final assessment and submission
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