Financial Management of Capital Projects, Monitoring, Reporting, Control, Cost Analysis, & Performance Measurement

Course Properties

Course date: 05-11-2017
Course End Date: 09-11-2017
Location Sharm El-Sheikh

Course Objectives:

   This course is designed to empower participants with the knowledge, skills and attitudes required for mastering the skills of applying a structured approach to project justification and investment appraisal. By the end of the training course, participants will be able to understand the use of economic evaluation techniques in project proposals; calculate the economic and financial viability of expenditure proposals; assess the ranking of alternative proposals; quantify the impact of risk and un-certainty; and prepare project expenditure proposals in a way that will win management approval.

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Who should Attend:

     1.  Financial managers
     2.  Top and middle management

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Course Contents:

      •  Basic concepts:
                          The key ingredients of project approval; how to get the cost estimate right

      •  How to Calculate the Accounting rate of Return (ARR)
      •  Identifying project cash flows:
                         Sources of information

      •  How to calculate project payback
      •  How to Calculate the Net Present Value (NPV):
                        The use of discounted cash flow (DCF) in decision making

      •  The cost of capital:
                        Choosing the right discount rate

      •  How to calculate the internal rate of Return (IRR)
      •  How to calculate the profitability Index (PI)
      •  Comparison of investment appraisal methods: 
                       Critique of each method, does each method always result in the same conclusion?

      •  Project ranking: 
                       How to choose the best alternative

      •  Decision making under capital rationing:
                      What if we don’t have enough money;
                      How to optimize expenditure;
                      Tips for preparing capital expenditure budgets;
                      How to deal with exchange rates

      •  Taking account of taxation: 
                      Understanding tax allowances; how to distinguish Capex and Opex

      •  Accounting measure Vs. operational measures:
                     Understanding other financial criteria for decision making;
                     Balancing short term vs. long term business objectives

     •  Dealing with risk and uncertainty:
                     How to identify and quantify project risks and uncertainties
                     How to perform sensitivity analysis;
                     How to calculate profitability of outcome;
                     How to calculate maximum exposure;
                     How to draw and interpret a spider diagram; decision trees, and the calculation of expected 
monetary value (EMV)