The long-term growth of an organization depends on the ability to make effective investment decisions.
Our course covers the process, criteria and methods that are applied to decide which projects to undertake. The program focuses on tools and techniques for managing risk and uncertainty in capital projects.
Learning objectives
- Explain the steps in the investment decision-making process.
- Apply investment appraisal techniques and explain their results, strengths and weaknesses.
- Collect the data required for capital decision making.
- Build capital investment models including working capital, taxation, inflation.
- Analyse risk and uncertainty associated with the investment decision making.
- Optimize investments for long-term growth.
- Determine the optimum asset replacement cycle.
- Choose between buying an asset or taking it on lease.
Target audience
CFOs, finance business partners, investment managers, investment / financial / credit analysts, management accountants, project managers, internal auditors.
Training program
The training program below is a sample and can be modified to meet the unique business needs of the organization.
Capital investment
- Decision making model for capital expenditure decisions
- Types of capital investment projects
- Post-completion audit
Appraisal methods
- Traditional methods: payback period (PP), accounting rate of return (ARR)
- Time value of money and discounting
- Appraisal methods based on discounting: net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), discounted payback period (DPP), profitability index (PI), discounted payback profitability index (DPBI)
Capital investment
- Financial model templates
- Relevant cash flows
- Terminal value. Annuities and perpetuities
- Working capital
- Taxation (income tax, VAT)
- Inflation
- Cost of capital
Dealing with risk in investment decisions
- Sensitivity analysis
- Scenario analysis
- Monte Carlo simulation
- Stress testing
- Value at risk (VaR)
- Decision trees and multi-stage decision problems
- Real options
- Adding a risk premium to the discount rate
Further aspects of investment appraisal
- Capital rationing
- Capital assets replacement decisions
- Lease or buy decisions
Organisational information
- Date
- Price
- Duration
- Format
- Language
Date
2-3 & 9-10 June 2025
Price
600 EUR + VAT
Duration
4 workshops -16 hours - from 9:00 to 13:15 CET (including one 15-minute break)
Format
Live/Online
Language
English
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