Financial Management

Investment Appraisal (Excel) - non-discounting

Payback Period and Accounting Rate of Return in Excel

2 CPD credits on completion
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Certificate on completion
Downloadable resources
Self-paced learning

About This Course

Course Information

This CPD course is designed to develop your investment appraisal technique using excel and non-discounting tools.

Certificate on Completion

This course is made up of videos, questions and additional reading materials, and accounts for 2 units of CPD. One unit is the equivalent of one hour of learning.

Course Sections

This course is made up of the following sections:

  • Investment appraisal – non-discounting – part 1 (video)
  • Investment appraisal – non-discounting – part 1 (quiz)
  • Investment appraisal – non-discounting – part 2 (video)
  • Investment appraisal – non-discounting – part 2 (quiz)

What You Will Learn

  • Explain the three characteristics of investment decisions: significance of outlay, time horizon, and uncertainty of returns
  • Calculate the payback period for a project and apply decision rules based on company-targeted payback thresholds
  • Identify the advantages and limitations of the payback method, including its treatment of cash flows after the payback point
  • Calculate the Accounting Rate of Return (ARR) and compare it against a target return to assess project viability
  • Distinguish between relevant and non-relevant project costs, including sunk costs and incremental cash flows
  • Apply both payback and ARR methods in Excel to appraise investment projects

Who This Course Is For

  • Finance professionals who want to build or improve their investment appraisal skills using non-discounting methods
  • Accountants and managers involved in capital expenditure decisions who need practical Excel-based tools
  • Professionals new to project appraisal who want a grounded introduction before moving to discounting techniques

Prerequisites

  • Basic understanding of cash flows and how they differ from accounting profits
  • Basic familiarity with Microsoft Excel (entering formulas, simple calculations)

Frequently Asked Questions

Course Details

CPD Credits2
CertificateYes

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Investment Appraisal (Excel) - non-discounting | CPD | Learnsignal