Nov 1st 2016

Financial Decision Rules for Project Evaluation (edX)

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Learn how to use decision criteria and rules to evaluate projects based on their impact on business, including payback, NPV and IRR. In this finance course, learners will be exposed to real world decision-making rules used to prioritize projects, with several rich applications.

The specific decision rules we will analyze include:

- Payback

- Internal Rate of Return

- Net Present Value

The relation between these different decision rules and value creation, or equivalently shareholder wealth maximization, will be emphasized. The foundational framework of time value of money will be used to introduce the concepts and applications, and to critically evaluate the strengths and weaknesses of alternative decision criteria. This will be followed by an exposure to the valuation of bond/debt and stocks/shares. This course will also involve some basic exposure to how the profitability of projects is measured in the real world.

This course is targeted to managers working in corporations or institutions and individuals planning to pursue a graduate degree in business (MBA).

What you'll learn:

- Different decision rules used to evaluate financial impact of projects

- To recognize the value creation involved in different choices

- To make smart choices among alternative decisions

- How to measure project profitability

- To apply fundamental financial skills to value bonds and stocks