Finance
Choose the capital investment
When investment options compete, build the incremental cash flow, then use NPV, IRR, a risk-matched discount rate and the capital constraint together to defend how the money is allocated.
Your learning route
The program order
Complete the programs in order to finish the route. Each one brings short lessons, applied practice and a realistic business case together.
Plus and Pro members can create a verifiable Stratify certificate when the route is complete.
- Program 01
Building the investment cash flow
Intermediate: you place an investment's upfront cost, its operating cash flows and its terminal value on one timeline, and you set a discount rate that matches the project's risk. By the end of this program you can discount a dated cash flow series to today, compute its net present value and defend the recommendation that follows.
- Put the cash flow on a timeline
Apply it: Closing case: defend the investment proposal
4 lessons · ≈3 hours
- Program 02
Comparing investments with NPV and IRR
Intermediate: you read NPV, IRR and payback period on the same cash flows and see which of them settles the decision. By the end of this program you can apply the NPV rule at a risk-adjusted rate, read an IRR against its hurdle rate, spot the cash flow patterns that produce several IRRs or none, and place payback period as a liquidity signal rather than a value test.
- Apply the NPV decision rule
Apply it: Closing case: speed or value
4 lessons · ≈3 hours
- Program 03
Choosing a discount rate that matches the risk
Intermediate: you can set a project's discount rate from the risk of the project rather than from the price the firm paid for its funds, and show what a single firm-wide hurdle rate does to the answer. By the end of this program you can price the gap in required return between two risk levels, recompute an NPV at a second rate, and defend the accept or reject call that rate produced.
- Where the rate comes from
Apply it: Closing case: two risks, two rates
4 lessons · ≈3 hours
- Program 04
Choosing a project portfolio under a capital constraint
Advanced: you allocate a limited investment budget across competing projects, compute the profitability index, and find where it breaks down once projects come in indivisible sizes. By the end of this program you can defend the combination that produces the highest total NPV inside the budget rather than the project with the highest return on its own.
- Build the feasible combinations
Apply it: Closing case: turn a budget into a portfolio
4 lessons · ≈3 hours