Investment Analysis by Discounted Cash Flow Course

A key basis of commercial activity is spending money today in the hope of creating value (making money) in the future. Getting this right is key to the success of companies, and in the aggregate to the wealth of societies. Recognizing that money has a time value, and using precise concepts of that through discounted cash flow (DCF) analysis, is the prime basis for making investment decisions.Read more...

In this course we cover why money has a time value, and how to use that concept to precisely calculate the how lenders price money and the value (return) for projects that use money. The internal rate of return (IRR)/ return on investment (ROI) from DCF analysis defines the value of projects, and is influenced by both project assumptions and decisions about financing. IRR analysis does not work for all investment decisions, including, for example, mandated investment with that generates no income such as an environmental retrofit. Alternate tools for analysis are covered. A key tool for successful companies, analyzing investment risk and developing risk mitigation measures where warranted, is illustrated.