This program teaches how to:
- Determine the criteria for investment in capital expenditure.
- Gain an insight into the industry best practices.
- Evaluate the application of various techniques, including: Discounted Cash Flow, Net Present Value, Average Rate of Return, Return on Capital Employed, Payback, Internal Rate of Return and Economic Value Added
- Determine relevant and non-relevant cash flow.
- Apply the techniques to different projects, investment types and industries.
- Identify the risks, challenges and issues associated with investments.
The course is structured around, and focused on, understanding how to select the most optimum capital investment. Each module is underpinned by workshop-based, real-world case studies.
The overall approach is geared towards facilitating and divulging information and skills relevant to the practical needs of the attendees, and includes the following topics:
- Relationship between Risk and Return
- Cost of Capital
- Payback Methodology
- Return on Investment
- Time Value of Money
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
- Economic Value Added (EVA)
- Leasing Decisions
- Capital Replacement
- Capital Rationing
- Investment Appraisal in the context of a business case
- Practical issues of Investment Appraisal
Investment decision makers, particular within the non-financial functions