7 Topics
5 Days
35 Sessions
Programme Overview
Training Description
Session Objectives
- Understand the core principles of capital budgeting. Evaluate different investment appraisal techniques. Calculate the time value of money and its impact on projects. Assess project risk and uncertainty. Develop a systematic process for capital project evaluation. Analyze and interpret financial data for investment decisions. Master advanced capital budgeting methods. Justify investment proposals with quantitative and qualitative analysis. Implement best practices for post-audit of capital projects.
About the Course
Investment Edge: Capital Budgeting and Investment Appraisal is a practical training course designed to equip finance, investment, and management professionals with the skills required to evaluate long-term investment opportunities and make financially sound capital allocation decisions.
The course explores capital budgeting techniques, investment appraisal methods, project cash-flow analysis, risk assessment, financing considerations, and post-investment evaluation. Participants will learn how to assess whether proposed investments are financially viable, compare competing projects, incorporate uncertainty into investment decisions, and align capital expenditure with organizational strategy.Through practical calculations, case studies, and investment scenarios, participants will develop the ability to evaluate projects using techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period, Profitability Index, and sensitivity analysis.
Curriculum & Topics
7 Topics | 35 Sessions
-
Workshop 1.1:
The role of capital budgeting in strategic planning.
-
Workshop 1.2:
Overview of the investment appraisal process.
-
Workshop 1.3:
The difference between independent and mutually exclusive projects.
-
Workshop 1.4:
Key drivers of capital investment decisions.
-
Workshop 1.5:
The importance of cash flows over accounting profits.
-
Workshop 2.1:
Present value and future value concepts.
-
Workshop 2.2:
Calculating net present value (NPV).
-
Workshop 2.3:
The concept of the internal rate of return (IRR).
-
Workshop 2.4:
The payback period and discounted payback period methods.
-
Workshop 2.5:
Comparing different investment appraisal techniques.
-
Workshop 3.1:
Identifying relevant cash flows for a project.
-
Workshop 3.2:
Distinguishing between initial, operating, and terminal cash flows.
-
Workshop 3.3:
The impact of depreciation, taxes, and inflation on cash flows.
-
Workshop 3.4:
How to handle sunk costs, opportunity costs, and side effects.
-
Workshop 3.5:
A practical workshop on building a cash flow model.
-
Workshop 4.1:
Sources of project risk and how to measure them.
-
Workshop 4.2:
Techniques for incorporating risk into analysis.
-
Workshop 4.3:
Sensitivity analysis and its application.
-
Workshop 4.4:
Scenario analysis for a range of possible outcomes.
-
Workshop 4.5:
Decision trees for sequential investment decisions.
-
Workshop 5.1:
Defining the cost of capital.
-
Workshop 5.2:
The components of the weighted average cost of capital (WACC).
-
Workshop 5.3:
Estimating the cost of debt and cost of equity.
-
Workshop 5.4:
Practical methods for calculating WACC.
-
Workshop 5.5:
Using the cost of capital as a discount rate.
-
Workshop 6.1:
Capital rationing and how to handle it.
-
Workshop 6.2:
The role of real options in project valuation.
-
Workshop 6.3:
The equivalent annual cost (EAC) method.
-
Workshop 6.4:
How to handle non-traditional cash flow patterns.
-
Workshop 6.5:
The importance of post-audit and project review.
-
Workshop 7.1:
The strategic link between capital budgeting and corporate strategy.
-
Workshop 7.2:
Applying investment appraisal to a full business case.
-
Workshop 7.3:
Case studies from various industries.
-
Workshop 7.4:
Presentation skills for investment proposals.
-
Workshop 7.5:
A final workshop: developing a full capital budget for a sample company.
