Free CMA Video Lesson: Capital Budgeting Process

For this month’s free video lecture, we’re tackling one of the trickier topics on Part 2 of the CMA Exam: Capital Budgeting Process. Check it out!

Capital Budgeting Analysis

Capital Budgeting Analysis is the process of evaluating how an organization invests in capital assets, or assets that provide cash flow benefits for more than one year. The big question we’re trying to answer is whether the future benefits of the project will be large enough to justify the capital investment. ?

This Wiley CMAexcel video lecture features Prof. Doug Clinton of Northern Illinois University and will briefly discuss the three stages within Capital Budgeting Analysis:

1. Decision Analysis for Knowledge Building
2. Option Pricing to Establish Position
3. Discounted Cash Flow (DCF) for making the Investment Decision

Enjoy …