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.

About this Course
No prior background knowledge or experience is required; however, it is recommended courses be completed in order.
Could your company benefit from training employees on in-demand skills?
Try Coursera for BusinessWhat 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
No prior background knowledge or experience is required; however, it is recommended courses be completed in order.
Could your company benefit from training employees on in-demand skills?
Try Coursera for BusinessOffered by
Start working towards your Master's degree
Syllabus - What you will learn from this course
Complex Cash Flow Analysis
Project Valuation Techniques
Project Selection Techniques
Depreciation, Taxes, and Inflation
Reviews
- 5 stars95%
- 4 stars5%
TOP REVIEWS FROM PROJECT VALUATION AND THE CAPITAL BUDGETING PROCESS
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.
About the Finance for Technical Managers Specialization

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