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Applying Investment Decision Rules for Startups
  • Level Foundation
  • Duration 11 hours
  • Course by Yonsei University
  • Offered by

About

In the previous course, you learned financial statement analysis and how to make estimate of future financial status. In this course, you are going to learn capital budgeting. That is, how to make an investment decision. You would like to select the best project among various projects you can take. Then, you need to know the criteria. In this course, you are going to learn investment decision criteria such as NPV and IRR, which are most popular decision rules. Using financial analysis and discounted cash flow method, you can make pro forma financial statement and estimate project cash flows. Then, you apply investment criteria to determine whether to invest or not. After learning how to apply NPV and IRR method to investment decision, you are going to learn how to evaluate NPV estimate and scenario, what-if analyses and break-even analysis. In addition to NPV and IRR, you are going to learn Payback period method and Profitability method to determine whether to invest or not when there is a political risk or capital rationing.

Modules

Capital Budgeting techniques

    • 5 Videos
    • 4 Readings
    • 1 Discussion
    • 2 Assignment
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2 Assignment

  • Practice Quiz (1.1~1.4)
  • Week 1 Quiz

1 Discussions

  • IRR assumption & NPV assumption

5 Videos

  • Welcome to This Course
  • 1.1 Introduction to Capital Budgeting
  • 1.2 Net Present Value (NPV)
  • 1.3 Payback Period
  • 1.4 Internal Rate of Return

4 Readings

  • 1.1 Slide
  • 1.2 Slide
  • 1.3 Slide
  • 1.4 Slide

Project Analysis

    • 4 Videos
    • 4 Readings
    • 2 Assignment
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2 Assignment

  • Practice Quiz (2.1~2.4)
  • Week 2 Quiz

4 Videos

  • 2.1 Project Cash Flow Principles
  • 2.2 Pro Forma Income Statement
  • 2.3 Free Cash Flow
  • 2.4 Sensitivity Analysis

4 Readings

  • 2.1 Slide
  • 2.2 Slide
  • 2.3 Slide
  • 2.4 Slide

Issues in Capital Budgeting

    • 4 Videos
    • 4 Readings
    • 2 Assignment
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2 Assignment

  • Practice Quiz (3.1~3.4)
  • Week 3 Quiz

4 Videos

  • 3.1 Evaluating Multiple Projects
  • 3.2 Comparing NPV and IRR techniques I
  • 3.3 Comparing NPV and IRR techniques II
  • 3.4 Choosing the Discount Rate

4 Readings

  • 3.1 Slide
  • 3.2 Slide
  • 3.3 Slide
  • 3.4 Slide

Real Options in Business Projects

    • 4 Videos
    • 4 Readings
    • 1 Discussion
    • 3 Assignment
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3 Assignment

  • Practice Quiz (4.1~4.4)
  • Week 4 Quiz
  • Final Quiz

1 Discussions

  • Applying the B-S model to price a real option

4 Videos

  • 4.1 Options Basics
  • 4.2 Decision Tree Approach
  • 4.3 Black-Scholes Option Pricing Model
  • 4.4 Evaluating Projects Using B-S Model

4 Readings

  • 4.1 Slide
  • 4.2 Slide
  • 4.3 Slide
  • 4.4 Slide

Auto Summary

Dive into the world of capital budgeting with "Applying Investment Decision Rules for Startups," a foundational course in Business & Management. Guided by expert instructors from Coursera, you'll master key investment criteria like NPV and IRR, and learn to evaluate projects using financial analysis and discounted cash flow methods. This 660-minute course is perfect for aspiring entrepreneurs and managers looking to make informed investment decisions. Available with a Starter subscription, this course equips you with essential skills to navigate political risks and capital rationing scenarios confidently.

Saeyeul Park
Instructor

Saeyeul Park