This course is an introduction to decision-making criteria widely used in the real world and will help you understand the foundational principles of how most organizations make decisions. This course is part of a specialization titled “Foundational Finance for Strategic Decision-Making” and is helpful if you are interested in applying to an MBA degree program or learning the foundations of finance to be more effective in your career. This course is applied and problem-based with assignments that are intentionally introductory and simpler than real-world applications you will confront when making day-to-day financial decisions and in more advanced courses.
This course is part of the Foundational Finance for Strategic Decision Making Specialization
Decision Criteria & Applications
Offered By
About this Course
4,513 recent views
What you will learn
Enable you to use modern decision criteria
Evaluating different projects
Choosing the best alternatives you are confronted with based on financial thinking and analysis
Skills you will gain
Calculating the Internal Rate of Return of a ProjectCalculating Net Present Value of a Project
Syllabus - What you will learn from this course
Week
13 hours to complete
week 1: Decision Criteria
During this week, we develop a basic understanding of alternative decision criteria - Net Present Value (NPV), Internal Rate of Return (IRR), Profitability, etc. - that are commonly used in the real world, with a focus on a critical evaluation of their strengths and weaknesses.
6 videos (Total 79 min), 3 readings
6 videos
1.1 Decision Criteria: NPV20m
1.2 NPV: Intuition & Beauty18m
1.3 NPV: Properties & Formula9m
1.4 Decision Criteria: Payback15m
1.5 Decision Criteria: IRR13m
3 readings
Specialization Syllabus45m
Course 2-Syllabus30m
Note-Formulae30m
Week
25 hours to complete
Week 2: Decision Making - A Deeper Look
Having looked at multiple decision criteria last week, we will focus this week on a more deeper and critical analysis of the most widely used Criteria. Again, we will use examples to evaluate all issues. This week will also include the first graded assignment.
3 videos (Total 36 min), 1 reading, 2 quizzes
1 reading
Note-Spreadsheets30m
2 practice exercises
Practice Assignment 12h
Assignment 12h
Week
32 hours to complete
week 3: Cash Flows
This week we will introduce the basics of cash flows, one of two critical inputs to any value-creating decision. Some exposure to Accounting will be helpful and Ross School of Business also offers a MOOC on the basics of Accounting.
3 videos (Total 47 min), 1 reading
1 reading
Note-Sample Cash Flow Template1h
Week
47 hours to complete
week 4: Applications of Cash Flows
This week is all practice of cash flows. You are encouraged to use a detailed Cash Flow Template to create one for yourself. This will require putting together a bunch of information in a Spreadsheet and learn how to do some financial modeling. You will then have to submit the second and last graded assignment for this course that will help you evaluate your skills.
2 readings, 2 quizzes
2 readings
Note-Sample Cash Flow Template1h 30m
Note-Spreadsheets1h
2 practice exercises
Practice Assignment 22h
Assignment 22h
4.9
3 ReviewsTop reviews from Decision Criteria & Applications
An excellent course for decision making criteria and an intuitive as well as practical course for such concepts as IRR bench marking, cost of capital etc.
The discussion and examples regarding NPV and IRR was very clear. It was also a good overview of project and business cash flows.
Instructor
Gautam Kaul
Professor of Finance & Fred M. Taylor Professor of Business AdministrationRoss School of Business
About University of Michigan
The mission of the University of Michigan is to serve the people of Michigan and the world through preeminence in creating, communicating, preserving and applying knowledge, art, and academic values, and in developing leaders and citizens who will challenge the present and enrich the future.
About the Foundational Finance for Strategic Decision Making Specialization
Understand and apply the foundational principles of finance to most business problems and strategies. This integrated set of courses focuses on both the theory and practice of financial decision-making through an applied lens. Ideal for learners seeking to advance their career and/or pursue a business degree, such as a Master of Business Administration (MBA) degree, a great understanding of foundational concepts in finance will help you to understand the principles of personal finance and investing. After successful completion of the four-course program, you will be equipped to make thoughtful decisions based on a framework built using multiple advances in modern financial theory.
Frequently Asked Questions
When will I have access to the lectures and assignments?
Once you enroll for a Certificate, you’ll have access to all videos, quizzes, and programming assignments (if applicable). Peer review assignments can only be submitted and reviewed once your session has begun. If you choose to explore the course without purchasing, you may not be able to access certain assignments.
What will I get if I subscribe to this Specialization?
When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.
What is the refund policy?
Is financial aid available?
More questions? Visit the Learner Help Center.
Coursera provides universal access to the world’s best education,
partnering with top universities and organizations to offer courses online.
© 2019 Coursera Inc. All rights reserved.
