Capital Budgeting: The Capital Budgeting Process
Finance and nonfinance professionals, functional managers, executives, and all individuals in key roles involved directly or indirectly with the capital budgetary planning and process in an organization
Please contact us for information about prerequisites.
Organizations everywhere must decide how to most efficiently spend their capital to continue operations, innovate, and grow. Capital budgeting is a systematic process used to determine how capital a limited resource is best allocated to projects that maximize the value of the organization. The projects chosen must align with the organization’s greater strategy.
This course demonstrates the value of following the capital budgeting process and introduces the three stages in that process: project identification and screening, quantitative assessment, and capital allocation and rationing. The course then focuses on the first stage, exploring how to identify opportunities for capital investment, and subject these initial ideas to preliminary screening based on their feasibility, alignment with organizational strategy, and dependence on other projects.
Beginning the Capital Budgeting Process