Class Central is learner-supported. When you buy through links on our site, we may earn an affiliate commission.

LinkedIn Learning

Investment Evaluation

via LinkedIn Learning

Write review
Scrimba Ad

Get 20% off all career paths from fullstack to AI

Learn More → DataCamp Ad

PowerBI Data Analyst - Create visualizations and dashboards from scratch

Learn More →

Overview

Syllabus

Introduction
  • Welcome
  • Course requirements and structure
1. Investment
  • Components of an investment
  • Investments and economic capital
  • Types of investments
  • Opportunity cost
  • Time value of money
  • Present, future, and terminal values
  • Challenge 1: Determine present, future, and terminal values
  • Solution 1: Determine present, future, and terminal values
  • Real talk: Investments and opportunity costs
  • Evaluation methods
2. Discounted Cash Flow (DCF)
  • What is DCF?
  • Solve for DCF
  • Challenge 2: Calculate DCF over 30 years
  • Solution 2: Calculate DCF over 30 years
  • Pros and cons of DCF
  • Real talk: Discounted cash flows
3. Net Present Value (NPV)
  • The net present value equation
  • NPV using tables
  • Challenge 3: Calculate NPV using table values
  • Solution 3: Calculate NPV using table values
  • A fully worked out example
  • NPV using a Microsoft Excel formula
  • Challenge 4: Calculate NPV using Microsoft Excel
  • Solution 4: Calculate NPV using Microsoft Excel
  • Pros and cons of NPV
  • Real talk: Net present value
4. Internal Rate of Return (IRR)
  • What is IRR?
  • IRR calculation the long way
  • The case of no IRR
  • The case of multiple IRRs
  • IRR using the Microsoft Excel formula
  • Challenge 5: Calculate NPV and IRR
  • Solution 5: Calculate NPV and IRR
  • Pros and cons of IRR
  • Payback period
  • Payback period in Microsoft Excel
  • Challenge 6: Choose a project based on NPV, IRR, and payback period
  • Solution 6: Choose a project based on NPV, IRR, and payback period
  • Real talk: IRR and payback period
Conclusion
  • Next steps

Taught by

Yash Patel

Reviews

4.7 rating at LinkedIn Learning based on 891 ratings

Start your review of Investment Evaluation

Never Stop Learning.

Get personalized course recommendations, track subjects and courses with reminders, and more.

Sign up for free
Someone learning on their laptop while sitting on the floor.