Learning goals :
- To understand the various indicators of profitability and return used in performance evaluation;
- To be able to define and calculate each indicator for any given project;
- To understand how these indicators affect performance evaluation and investment decisions.
Chapters :
- Introduction
- Leverage
- Weighted Average Cost of Capital (WACC)
- Net Present Value (NPV)
- Internal rate of return (IRR)
- Return on Investment (ROI) and Profitability index (PI)
- Payback
- Conclusion
- Quiz : Key financial for investment decisions
A word from the author:
Although you may be a manager, an entrepreneur, a project manager or head of a business unit, you are not necessarily a business finance expert. Every manager, however, needs to understand and to deal with their company’s global financial figures. When considering any investment, financial managers have to take into account the company’s economic return criteria, and the requirements of the providers of funds. The analysis of investment return is a financial forecasting tool that helps business managers to evaluate potential investments within the scope of their business objectives and financial constraints.
The productivity analysis, risk calculation, and financial impact of these decisions are therefore essential to steer control of the business.
This program will enable you to employ a financial approach when making your investment decisions, and to discover the means and methods for measuring investment performance in the context of the highest return and lowest risk.