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Applying Investment Decision Rules for Startups – Part 2 of Valuation for Startups Using Discounted Cash Flows Approach

  • This course explains the planning process used to determine whether an organization’s long-term investments are worth the funding through the firm’s capitalization structure.
  • For entrepreneurs looking to learn financial analysis comprising of investment decision evaluations, project analysis, etc.
  • Helps you calculate the company’s cash flow, net profit analysis, etc., for stipulating capital and budget of the company

In this course, you are going to learn capital budgeting and investment decision criteria such as Net Present Value and Internal Rate of Return, which are most popular decision rules. Using financial analysis and discounted cash flow method, you can make a pro forma financial statement and estimate project cash flows. Then, you apply criteria to determine whether to invest or not. After learning how to apply NPV and IRR method to investment decision, you are going to learn how to evaluate the NPV estimate and scenario, what-if analyses, and break-even analysis.

In addition to NPV and IRR, you are going to learn Payback Period method and Profitability method to determine whether to invest or not when there is a political risk or capital rationing.

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