CMA US Part 2 -Section E - Investment Decisions

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Investment Decisions & Capital Budgeting

Welcome to the course.

This video tutorial traverses through understanding of Investment decisions using Capital Budgeting Process and concept of relevant Cash Flows. In this tutorial, you will learn --

Capital Budgeting Process and Relevant Cash Flows - This section introduces you as a learner to investment decision process and process of capital budgeting are also discussed.

This section focuses on -
-- Capital Budgeting Process - Introduction
-- Stages & Terms used in Capital Budgeting
-- Cash Flows v/s Accounting profits
-- Relevant cash flows - Introduction
-- How to identify relevant cash flows
-- Calculating the Relevant Cash Flows
-- Depreciation for Income Tax Purposes
-- Other Tax Considerations
-- Irrelevant Cash Flows
-- Example of Calculation of After-Tax Relevant Cash Flows

Payback and Discounted Payback Methods
-- Capital Investment Analysis Methods
-- Payback Period or Payback Method
-- Discounted Cash Flow Methods of Capital Budgeting
-- Discounted Payback Period or Method (Breakeven Time)

Net Present Value Method
-- Net Present Value (NPV) Method
-- The Importance of the Discount Rate Choice

Internal Rate of Return Method & Other Topics
-- Internal Rate of Return (IRR)
-- Incremental Analysis: A New Asset Replacing an Old Asset
-- Summary and Review of Relevant Cash Flows
-- Risk in Capital Budgeting
-- Capital Rationing in Capital Budgeting
-- Real Options in Capital Budgeting
-- The Qualitative Factor in Capital Budgeting Decisions

All explanations are based on CMA-USA-Part-2 syllabus which is considered as gold-level standard for management accounting profession. Teaching methodology is based on join-thedots pedagogy inter-linkage of multi-discipline subjects, a very powerful tool for aspiring leaders.

This course is suitable for candidates pursuing CMA-USA or CMA-India/CIMA-UK or candidates pursuing a career in finance & accounting. Feel free to drop us a message if you need any assistance for CMA-USA course material or any other queries.

Happy Learning

CMA Kiran
C2C Consulting

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