CDFM 119 - Capital Budgeting

Institution:

West Virginia Northern Community College

Subject:

Career Dev: Fiscal Management

Description:

The course begins by explaining what a capital budget is and identifying different types of Fixed Assets. It lists several factors that influence fixed asset acquisitions. It goes on to identify different sources of funds and discusses the advantages and disadvantages of accessing each one. The course talks about the importance of carefully evaluating any acquisition of fixed assets before spending any money. The learner is introduced to two criteria, returns, and time, and three benchmarks, returns, time and risk, to evaluate any buying decision. It illustrates by way of examples how these different bench- marks can be used to evaluate acquisitions of fixed assets. the course introduces the concept of the time value of money and using examples, shows the learner how to use different value tables, Present Value, Future Value and Annuity Tables to appraise different kinds of fixed asset acquisitions. The course introduces two financial ratios, the Inventory Turnover Ratio and the Day sales Outstanding Ratio, that the learner can use to monitor and control two important current assets, Inventory and Receivables. Learners are taught how to use these ratios.

Credits:

0.50

Credit Hours:

Prerequisites:

Corequisites:

Exclusions:

Level:

Instructional Type:

Lecture

Notes:

Additional Information:

Historical Version(s):

Institution Website:

www.wvncc.edu/

Phone Number:

(304) 233-5900

Regional Accreditation:

North Central Association of Colleges and Schools

Calendar System:

Semester

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