About this Course

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Flexible deadlines

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Beginner Level

Some exposure to algebra and problem-solving and an introductory understanding of time value of money (TVM)

Approx. 11 hours to complete

Suggested: This course will require 3-5 hours per week....

English

Subtitles: English

What you will learn

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    Enable you to use modern decision criteria

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    Evaluating different projects

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    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

100% online

Start instantly and learn at your own schedule.

Flexible deadlines

Reset deadlines in accordance to your schedule.

Beginner Level

Some exposure to algebra and problem-solving and an introductory understanding of time value of money (TVM)

Approx. 11 hours to complete

Suggested: This course will require 3-5 hours per week....

English

Subtitles: English

Syllabus - What you will learn from this course

Week
1
3 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
2
5 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
3 videos
2.2 IRR: A Practical Issue11m
2.3 IRR: Properties8m
1 reading
Note-Spreadsheets30m
2 practice exercises
Practice Assignment 1s
Assignment 1s
Week
3
2 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
3 videos
7.2 Cash Flows: A Template16m
7.3 Cash Flows: Capital Items14m
1 reading
Note-Sample Cash Flow Templates
Week
4
7 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 Template30m
Note-Spreadsheetss
2 practice exercises
Practice Assignment 2s
Assignment 2s

Instructor

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Gautam Kaul

Professor of Finance & Fred M. Taylor Professor of Business Administration
Ross 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....
Foundational Finance for Strategic Decision Making

Frequently Asked Questions

  • 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.

  • 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.

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