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Level 7 Diploma in Health and Social Care Management

Capital Expenditure and Investment Appraisal

HSC703 · Managing Finance in the Health and Social Care Sector — Week 10 of 16

CourseHSC703
Week10 of 16
SemesterI
TutorOnline in the course chat

This week’s topics

Capital Expenditure and Investment Appraisal

  1. Net present value (NPV)
  2. Internal rate of return (IRR)
  3. Payback period method
  4. Accounting rate of return (ARR)
  5. Capital budgeting techniques
  6. CIMA P2 Discounted Investment Appraisal Techniques - Net present Value, IRR
  7. CIMA P2 Basic Investment Appraisal Techniques – ARR and Payback

What you will be able to do

  • 3.3 Evaluate capital expenditures and investment projects using different investment appraisal techniques

Activity

Start with this week’s 3 videos, then: Seminar, guided reading and a short written task: evaluate capital expenditures and investment projects using different investment appraisal techniques

Study materials

Videos

  • Capital budgeting techniques · YouTube · The Finance Storyteller · 34 min · for registered students
  • CIMA P2 Discounted Investment Appraisal Techniques - Net present Value, IRR · YouTube · OpenTuition · 36 min · for registered students
  • CIMA P2 Basic Investment Appraisal Techniques – ARR and Payback · YouTube · OpenTuition · 18 min · for registered students
  • Session 14: Equity Analysis, Acquisition Valuation and NPV vs IRR · YouTube · Aswath Damodaran · 90 min · for registered students

Further resources

  • 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
  • MIT 15.401 Finance Theory I, lecture notes: Capital Budgeting · PDF · Other, slides · for registered students
Materials marked “for registered students” open in the student portal, which is set up as soon as you receive final acceptance.
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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: Foundations of Financial Management in Healthcare
  • Week 2: Financial Technology and Accounting Information Systems
  • Week 3: Double-Entry Bookkeeping and Financial Recording
  • Week 4: Financial Performance Evaluation Using Ratios
  • Week 5: Short-Term and Long-Term Financing Needs
  • Week 6: Sources of Healthcare Financing
  • Week 7: Budgetary Control and Revenue Management
  • Midterm: Midterm evaluation
  • Week 9: Interpreting Healthcare Budgets
  • Week 10: Capital Expenditure and Investment Appraisal
  • Week 11: Strategic Financial Recommendations
  • Week 12: Applying Managing Finance in the Health and Social Care Sec…
  • 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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