Calculating Net Present Value (NPV) and Internal R...- ### Net Present Value (NPV) Function
The NPV function calculates the present value of a series of c...

## COURSE

## Capital Budgeting

This course is a part of CFA Level I study material. You will learn about capital budgeting and the assessment of capital investments.

#### Course Downloads

Study Notes for CFA Level I - Capital Budgeting

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- This video explains the concept of net present value (NPV) and shows how it is calculated. <VideoWi...
- A company, from time to time, will have to make investments in a variety of capital projects. Whethe...
- Even though the capital budgeting decisions can be very complex with lots of underlying assumptions ...
- The cash flow analysis for making capital decisions can become more complex because of the interacti...
- The payback period of a project is defined as the number of years it takes for the project to recove...
- We learned that one of the drawbacks of payback period is that it does not consider time value of mo...
- The profitability index, also known as the profit investment ratio, is calculated as the ratio of th...
- When you are analyzing a single conventional project, both [NPV and IRR](https://financetrain.com/ne...

## LESSONS

Net Present Value of a Project

The Capital Budgeting Process

Principles of Capital Budgeting

Mutually Exclusive Projects, Project Sequencing, a...

How to Calculate Payback Period

How to Calculate Discounted Payback Period

Calculating Profitability Index of a Project

Conflict Between NPV and IRR