Introduction to Advanced Finance
Overview/Description
Don't be intimidated by corporate finance and choosing appropriate investment projects. If you are a corporate manager faced with choosing between different investment projects, this course will be helpful. You will review Time Value of Money concepts, and learn how to choose corporate projects using accounting models and cash flow models.
Target
Audience
This course is designed specifically for business managers, financial professionals, and other business professionals who need to understand finance and investment concerns in corporations, and to analyze their own businesses or the performances of other companies.
Expected
Duration
3.0 hours
Lesson
Objectives:
Time Value of Money- recognize the benefits of using time value of money calculations in capital budgeting decisions.
- given appropriate amounts, calculate interest or discount rate and period of time for PVIF tables. Then calculate the appropriate present value (PV).
- given appropriate amounts, calculate the appropriate interest or discount rate and period of time for FVIF tables. Then calculate future value (FV).
- given appropriate amounts, calculate the interest or discount rate and period of time for the PVIFA table. Then calculate present value of an annuity (PVA).
- given appropriate amounts, calculate the appropriate interest or discount rate and period of time for FVIFA tables. Then calculate future value of an annuity (FVA).
- calculate implicit discount rate, given appropriate future value and present value amounts.
Accounting Models- identify the benefits of using ROC and ROE calculations.
- calculate ROE, then calculate average ROE, given earnings before interest and taxes, book value, and net income amounts.
- calculate ROC, then calculate average ROC, given earnings before interest and taxes, book value, and net income amounts.
Cash Flow Models- identify the benefits of using cash flow models for capital budgeting decisions.
- calculate PV, given appropriate cash flow amounts for a project with even cash flows, and a project with uneven cash flows, then calculate NPV for each project.
- select the appropriate IRR percentage given a company's required rate of return and IRR percentages for a project with even cash flows, and a project with uneven cash flows .
- calculate payback for a project with even cash flows, and for uneven cash flows, given appropriate cash flow amounts.
Course Number: FIN0211