GoFast.Finance/CMA Part 2E: Capital Investment Decisions

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CMA Part 2E: Capital Investment Decisions

  • Course
  • 10 Lessons

Use CMA capital budgeting tools to build and challenge investment cases that hold up at steering committees and on the exam.

📐 Investment structure: Turn vague ideas into structured capital projects with clear cash flows and assumptions.

🗣️ Credible challenge: Ask better questions and provide grounded recommendations in investment and capex reviews.

🏦 Better capital allocation: Support investment decisions that align with strategy and deliver sustainable value.

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Who this is for

Project and capex controllers structuring business cases, modeling project cash flows and challenging investment proposals.

FP&A managers, finance managers and CMA candidates advising leadership on competing capital investment options.

Prerequisites

Knowledge: Basic time value of money, cost of capital and project cash flow concepts.

Tools: Spreadsheet skills and CMA approved calculator capable of NPV and IRR computations.

Learning Outcomes

  1. Structure incremental project cash flows, including tax effects and working capital changes.

  2. Apply NPV, IRR, payback and related capital budgeting methods to exam style projects.

  3. Evaluate uncertainty using sensitivity and simple scenario analysis.

  4. Link capital investment decisions to strategic and operational objectives for clear recommendations.

CPE Information

  • Eligibility: currently not eligible

  • Watch time: about 1.5 hours

  • Total learning: about 3 hours

  • Estimated credits: 2.0

Contents

Module 1: Capital budgeting process in practice

Lesson 1: Stages of the capital budgeting process
Lesson 2: Identifying incremental project cash flows
Lesson 3: Incorporating income taxes into project cash flows
Lesson 4: Evaluating project uncertainty and risk
Lesson 5: Choosing project discount rates

Module 2: Investment analysis methods and comparisons

Lesson 6: Net present value in project evaluation
Lesson 7: Internal rate of return and related measures
Lesson 8: Payback and discounted payback screens
Lesson 9: Comparing NPV, IRR and payback methods
Lesson 10: Sensitivity and simple scenario analysis