PLEASE NOTE: This program is currently being taught as a live online course. See agenda below for schedule.
Almost every decision in the corporate world is financial in nature. There are numerous financial implications when purchasing another firm (e.g., a competitor or supplier), launching an expensive advertising campaign, deciding to purchase, rent or buy a new production facility—the list goes on.
This course will cover the basics of discounted cash flow analysis and rigorous cash flow forecasts derived from P&L projections. Participants will understand rules for making investment decisions, including the net present value (NPV) rule and internal rate of return (IRR) rule, as well as the treatment of real options. Participants will also learn how to compute the right discount rate, or cost of capital, to account for the time value of money as well as risk. This course will utilize numerical examples to give participants hands-on practice with each of the methods taught.
Advanced Corporate Finance builds upon the concepts and skills taught in this course. Save 15% by taking both courses in our Mastering Corporate Finance bundle.
Upon completion of this course, participants will receive a Certificate of Achievement.
Program Takeaways
During this course, participants will:
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Value
Learn how to make value-maximizing investment decisions -
Decision Rules
Appreciate the uses and misuses of popular decision rules (NPV, IRR) -
Forecasting
Analyze and make cash flow forecasts from projected income statements
Who Should Attend
Although there are no formal education or background requirements, this course is designed for executives who meet the criteria below. While we strongly encourage global participation, please note that all courses are taught in English. Proficiency in written and spoken English is required.
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Years of Experience
Designed for professionals with 5+ years of work experience -
Job Functions
Ideal for professionals who need to make financial decisions, or who frequently communicate with financial decision makers -
Prerequisites
Intended for individuals who want to improve their financial literacy
Agenda
The following agenda is a sample and subject to change.
This agenda has been modified for live online instruction. Please note there will be a 30-minute break from 12:00 - 12:30 pm ET.
10:00 am - 2:30 pm ET
Session 1: Discounted Cash-Flow Analysis and Rules to Make Investment Decisions
- Present Values, Perpetuities, Annuities
- Net Present Value Rule, Internal Rate of Return (IRR) Rule
- Shortcomings of the IRR Rule
- Payback Rule
- Capital Budgeting
Session 2: Real Options
- Option to Wait and the Value of New Information
- Option to Expand
- Option to Scale Investments Up or Down
This agenda has been modified for live online instruction. Please note there will be a 30-minute break from 12:00 - 12:30 pm ET.
10:00 am - 2:30 pm ET: Session 3: Cash Flows
- Five Steps of Project Valuation
- What are Cash Flows?
- Making Cash-Flow Forecasts: Investments, Recoveries, Depreciation, Sunk Costs, Opportunity Costs, Operating Cash Flows, Capital Gains and Losses, Working Capital
This agenda has been modified for live online instruction. Please note there will be a 30-minute break from 12:00 - 12:30 pm ET.
10:00 am - 2:30 pm ET: Session 4: Cost of Capital
- Capital Asset Pricing Model
- “Pure Play Approach” to Assess Project Risk
- Market Price of Risk
- Weighted Average Cost of Capital
Participant Reviews
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