Course Outline & Learning Outcomes

Day 1

Time Value of Money, Discount Rates and Decision Criteria 

Textbook Chapters 1, 2 and 3

• Become familiar with present, future and annual value calculations, related terminology, and proper application of these concepts

• Understand calculation of Rate of Return, Growth Rate of Return, Net Present Value and Ratio Analyses for "income-producing" and "service-producing" investments

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Day 2

Application of Decision Criteria, Inflation

Textbook Chapters 4 and 5 

• Understand the proper application of Rate of Return, Net Present Value and ratios when evaluating mutually exclusive and non-mutually exclusive alternatives

• Consider the Dual Rate of Return analysis problem common to acceleration scenarios and reclamation or decommissioning costs and how to make a valid economic analysis of investment involving cost-income-cost in the sequence of cash flows

• Understand inflation and distinctions between time value and purchasing power of money

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Day 3

Inflation, Risk, Sensitivity Analysis, After Tax Cash Flow

Textbook Chapters 5 and 6

• Follow discussion on escalated, constant and today's dollar evaluations

• Become familiar with the basics of "sensitivity" analysis as well as "risk adjusted" evaluations and how these address the basic elements of expected value and its incorporation into discounted cash flow calculations

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* Course ends at Noon on Day 3.