Economic Evaluation and Investment Decision Methods course is offered online in an asynchronous format. The content is broken down into three separate courses that must be taken sequentially: First Steps, Before-Tax, and After-Tax. Course work is self-paced and you will have six months from date of registration to complete the course.
January 1, 2024 – December 31, 2024
First Steps…………………………….$295.00 USD
First Steps + Before Tax………………$1,195 USD
First Steps + Before Tax + After Tax…$1,695 USD
1. First Steps
This is an entry level course designed to familiarize the participant with evaluation terminology and the ‘time value of money’ concepts used in class.
Time Value of Money, Discount Rates and Decision Criteria
Concepts of time value of money are developed and applied to calculating rate of return (internal rate of return), net present value, ratios and other criteria. Other topics include understanding spreadsheet functions, graphical approaches illustrating the meaning of rate of return and net present value as well as methods used to determine an appropriate discount rate. Evaluating service producing alternatives will be presented including cost analysis and incremental calculations.
Application of Decision Criteria, Introduction to Inflation
The application of decision criterion to mutually exclusive and non-mutually exclusive alternatives will be reviewed. This discussion will also introduce related problems concerning cash flow streams exhibiting a cost-income-cost pattern and the subsequent dual rates of return and the meaning of economic results.
Inflation, Risk, and Sensitivity Analysis
Application of inflation as it relates to escalated (or current) and constant (or real) dollar analyses will be introduced. Continued discussion on inflation will focus on understanding how this important parameter may impact the type of dollars and the appropriate discount rate in escalated and constant dollar calculations. Sensitivity analyses addressing uncertainty are explored along with an introduction to quantifying risk through expected value calculations.
After-Tax Cash Flow
Development of after-tax cash flow will focus on related tax deductions including costs that may be expensed, expenditures that are capitalized and deducted by methods such as depreciation, depletion, amortization or write-offs and loss forward considerations.
After-Tax Applications and Related Issues
The details of calculating after-tax cash flow and the related economics for a variety of investment scenarios will be discussed. Other topics include the impact of an investor’s financial position on economics and the handling of working capital. The conversion of before-tax operating cost savings into after-tax cash flow and the proper handling of sunk costs and opportunity costs will also be explored. We will calculate the before-tax market value of an asset by understanding the impact of taxes on the breakeven price. Breakeven and basic differences in financial versus tax reporting will also be addressed.