Join Rudolph Rosenberg for an in-depth discussion in this video What you should know before watching this course, part of Making Investment Decisions.
This course is about learning a methodology used by countless finance professionals worldwide, to evaluate investment decisions. In our everyday life, whether we are professionals, looking to invest the money of a company, or looking to invest our own money on a personal project. We take big and small investment decisions. Most of us base our decisions on general information, articles we have read, or conversations we have had. But rarely, do we use a structure then solid methodology to do so.
Every decision we take is therefore based both on the information we have gathered, and a little bit of luck. The methodology we will be learning about in this course is called the Net Present Value, or NPV for short. This methodology has no influence on luck of course. It will enable you to compute the information available to you, in a way that will ensure that if you take on an investment opportunity, it will have you make more money than any other alternative available to you.
It will also help you ensure that you are not about to invest in a project that will destroy the value of our investment money. Of course using NPV is not a guarantee of making only good decisions. The reason being, that in the end it will always rely on information that is available to you. And in your belief in the prospects of the project. This is why every day on Wall Street, some financial analyst will believes that the stock will go up, and some others that the same stock will go down. Every project has an element of risk to it.
And instead of going blindly into the project, we will be using NPV to evaluate projects and start taking calculated risks.
This course teaches the net present value (NPV) methodology, an investment evaluation formula used by countless publicly traded companies and financial analysts, in a way that makes it accessible and applicable to you—no finance background required. Rudolph Rosenberg explains what investments are, how they are measured, and what makes a good investment. Then he explores the NPV formula in depth, showing you how to evaluate your cash flows, choose a rate of return, and assess the risk of a particular investment. This all culminates in a look at how the principles of investment apply to three real-life scenarios that any individual or company might encounter.
- What is an investment?
- Understanding ROI
- What makes a good investment?
- Using the NPV formula
- Assessing risk
- Applying NPV to real-life situations