IFMP Capital Budgeting – Corporate Finance Certification (CBCFC), Pakistan study plan

IFMP Capital Budgeting – Corporate Finance Certification (CBCFC), Pakistan · Give each week a clear focus.

8 weeks · About 7 hours per week

Week 1

Capital Budgeting and Corporate Finance

Map every sub-topic in the single Capital Budgeting and Corporate Finance domain into a checklist and rate confidence 1-5 on each
Compute NPV, IRR, payback and discounted payback by hand for three simple project cash-flow streams without looking at notes
Distinguish independent versus mutually exclusive projects and state which decision rule governs each
Build a one-page formula sheet covering discounting, annuity and perpetuity factors

A dated topic checklist with confidence ratings plus a handwritten worked set of three NPV/IRR/payback solutions checked against a spreadsheet

Week 2

Derive incremental free cash flow from revenue, operating cost, depreciation, tax and working-capital changes for an expansion project
Separate sunk costs, opportunity costs and allocated overhead correctly in at least five short scenarios
Apply the correct treatment of depreciation tax shields and salvage value including tax on disposal gain or loss
Reconcile accounting profit to project cash flow line by line

A full incremental cash-flow table for one 5-year project with a written note justifying the inclusion or exclusion of each line item

Week 3

Estimate a project discount rate using CAPM with beta, risk-free rate and market risk premium inputs
Adjust an asset beta for target capital structure and explain when WACC versus a project-specific rate is appropriate
Compute WACC from debt and equity weights including the after-tax cost of debt
Identify common errors such as using the firm-wide WACC for a different-risk division

A worked WACC and CAPM calculation sheet for one company and one project, with a paragraph on why the two rates differ

Week 4

Analyse NPV profiles and explain ranking conflicts between NPV and IRR for mutually exclusive projects
Handle multiple IRR and no-IRR cash-flow patterns and state the correct fallback rule
Apply the equivalent annual annuity or replacement-chain method to projects of unequal lives
Evaluate a capital rationing case under a hard budget constraint by ranking profitability index

A timed 20-question self-test on decision criteria and ranking conflicts, scored and with every wrong answer rewritten as a corrected rule statement

Week 5

Build a scenario and sensitivity analysis for a base-case project, flexing price, volume, variable cost and discount rate
Compute and interpret break-even NPV inputs including accounting, cash and financial break-even
Explain how real options such as expansion, abandonment and timing alter a static NPV
Identify which variables carry the highest sensitivity and rank management attention accordingly

A sensitivity table showing NPV under pessimistic, base and optimistic cases plus a short memo naming the two variables that most affect the decision

Week 6

Assess capital investment decisions under inflation using nominal cash flows with a nominal rate and real cash flows with a real rate consistently
Explain the treatment of foreign projects including exchange-rate forecasting and remittance restrictions at a conceptual level
Distinguish capital budgeting from working-capital and dividend decisions within corporate finance scope
Review lease-versus-buy and asset-replacement decisions using after-tax cash flows

Two fully consistent worked examples, one nominal and one real, that produce the same accept or reject conclusion

Week 7

Complete a full-length timed mock covering all capital budgeting and corporate finance topics
Log every error by cause: concept gap, formula slip, misread question or time pressure
Re-work the ten weakest items from scratch without reference material
Memorise the decision rules and formula conventions that caused the most errors

A scored mock with an error log and a corrected second attempt on the ten weakest items

Week 8

Re-run the topic checklist from week 1 and confirm every item is rated 4 or 5
Complete two short timed drills on cash-flow construction and discount-rate estimation
Rehearse written justifications for accept or reject recommendations in exam-style wording
Finalise the one-page formula sheet and confirm exam-day logistics

A final confidence-rated checklist with no item below 4 and a completed formula sheet ready for exam day

Week 2: Can construct an incremental free cash-flow table unaided and defend each line item in writing

Week 4: Scores at least 70 percent on the decision-criteria self-test and can explain NPV versus IRR ranking conflicts without notes

Week 6: Produces matching nominal and real NPV conclusions and can rank the top two sensitivity drivers of a project

Week 8: Full mock score shows no repeated error category and every checklist item is rated 4 or 5