This course is part of the Finance for Technical Managers Specialization

4.9
stars
19 ratings

Michael J. Readey, Ph.D.

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Part of the Master of Engineering in Engineering Management degree
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Finance for Technical Managers SpecializationUniversity of Colorado Boulder

About this Course

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This course describes the economic viability of an engineering project through the application of net present value, internal rate of return, and payback period analysis. The impacts of depreciation, taxes, inflation, and foreign exchange are addressed. The capital budgeting process is discussed, showing how companies make decisions to optimize their investment portfolio. Risk is mitigated through the application of quantitative techniques such as scenario analysis, sensitivity analysis, and real options analysis.
This course can be taken for academic credit as part of CU Boulder’s Master of Engineering in Engineering Management (ME-EM) degree offered on the Coursera platform. The ME-EM is designed to help engineers, scientists, and technical professionals move into leadership and management roles in the engineering and technical sectors. With performance-based admissions and no application process, the ME-EM is ideal for individuals with a broad range of undergraduate education and/or professional experience. Learn more about the ME-EM program at https://www.coursera.org/degrees/me-engineering-management-boulder.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Course 2 of 3 in the

Finance for Technical Managers Specialization

Intermediate Level

No prior background knowledge or experience is required; however, it is recommended courses be completed in order.

Approx. 17 hours to complete

English

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What you will learn

Determine the net present value (NPV), internal rate of return (IRR), and payback periods (PBP) of a series of cash flows using spreadsheet analysis
Apply NPV, IRR, and PBP criteria to evaluate an organization’s investment options
Understand depreciation of capital assets, income taxes, and the effects of inflation and foreign exchange on cash flow
Build a sophisticated financial model by incorporating realistic cash flows for a project

Skills you will gain

Project Valuation: NPV IRR and Payback Period
Creating a Compelling Project Business Case
Discounted Cash Flow Analysis
Project Selection Techniques

Flexible deadlines

Reset deadlines in accordance to your schedule.

Shareable Certificate

Earn a Certificate upon completion

100% online

Start instantly and learn at your own schedule.

Course 2 of 3 in the

Finance for Technical Managers Specialization

Intermediate Level

No prior background knowledge or experience is required; however, it is recommended courses be completed in order.

Approx. 17 hours to complete

English

Could your company benefit from training employees on in-demand skills?

Try Coursera for Business

Instructor

Instructor rating

5/5 (6 Ratings)

Michael J. Readey, Ph.D.

W. Edwards Deming Professor of Management & Associate Faculty Director for Graduate Education

College of Engineering & Applied Science

4,921 Learners

4 Courses

Offered by

University of Colorado Boulder

Start working towards your Master's degree

This course is part of the 100% online Master of Engineering in Engineering Management from University of Colorado Boulder. If you are admitted to the full program, your courses count towards your degree learning.

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Syllabus - What you will learn from this course

Week1

Week 1

3 hours to complete

Complex Cash Flow Analysis

3 hours to complete

7 videos (Total 71 min), 1 reading, 3 quizzes

Week2

Week 2

3 hours to complete

Project Valuation Techniques

3 hours to complete

8 videos (Total 80 min)

Week3

Week 3

3 hours to complete

Project Selection Techniques

Project valuation criteria such as the NPV and IRR determine whether a project’s financial benefits are greater than the required investment. Companies use these metrics to select projects for funding during the annual capital budgeting process. Technical managers also make investment decisions but are often constrained to select only one alternative from several good ones. This module covers several project selection techniques to ensure the best project is selected.

3 hours to complete

5 videos (Total 64 min)

Week4

Week 4

3 hours to complete

Depreciation, Taxes, and Inflation

3 hours to complete

7 videos (Total 93 min)

Reviews

4.9

3 reviews

5 stars
95%
4 stars
5%

TOP REVIEWS FROM PROJECT VALUATION AND THE CAPITAL BUDGETING PROCESS

by SSNov 29, 2022

This course gave a very good introduction on how to establish a project cash flow and use common business valuation metrics to evaluate if a project is financially justifiable.

View all reviews

About the Finance for Technical Managers Specialization

In Finance for Technical Managers, you will explore the fundamental principles of financial management. Topics include understanding and interpreting a company’s financial statements, the time value of money and its role in evaluating the economic viability of different projects, and the annual capital budgeting process every company performs when selecting which projects to fund. In addition, you will cover some highly practical topics, such as how to determine product costs, establishing a department’s annual budget, and ways of forecasting future sales. As a side benefit, the quantitative skills you will learn for business are identical to the skills necessary to manage your own personal finances. Therefore, you will extend your analyses to cover investing of mutual funds composed of stocks and bonds, and you will explore the fascinating area of asset allocation.

This specialization can be taken for academic credit as part of CU Boulder’s Master of Engineering in Engineering Management (ME-EM) degree offered on the Coursera platform. The ME-EM is designed to help engineers, scientists, and technical professionals move into leadership and management roles in the engineering and technical sectors. With performance-based admissions and no application process, the ME-EM is ideal for individuals with a broad range of undergraduate education and/or professional experience. Learn more about the ME-EM program at https://www.coursera.org/degrees/me-engineering-management-boulder.

Frequently Asked Questions

When will I have access to the lectures and assignments?
Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:
The course may not offer an audit option. You can try a Free Trial instead, or apply for Financial Aid.
The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
Is financial aid available?
Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

More questions? Visit the Learner Help Center.

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Project Valuation and the Capital Budgeting Process

About this Course

What you will learn

Skills you will gain