This course is provided by Wintrac.
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Overview
This course is intended for managers who are having to justify capital expenditures and need to know something of the methodologies and theory behind justifying major pieces of expenditure. The course is a two day event which involves participants working on processes and procedures that result in successful investment appraisal through the use of group and individual activities, exercises, formal inputs etc.
Prerequisites
All participants need some familiarity with financial terminology and appreciate the basics of accounts.
Course duration
2 Days
Course outline
What is Investment Appraisal?
- Introduction
- Criticality of the figures
- Accounting knowledge required for the course
Cost and Value
- Fixed and variable costs
- Significance of costs in the short term
- Semi-variable costs
- Total Costs
Other Types of Cost
- Marginal costs
- Contribution costs
Cost Benefit Analysis
- Cost Benefit Analysis
- Costing and Pricing Intangibles
- Opportunity Cost Investment
- What is meant by investment
- Capital
- Investment Criteria - correct selection
- Looking behind the figures
Popular Investment Analysis Methodologies
- Payback period
- Book Rate of Return
- Discounted Cash Flow
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
Sensitivity Analysis
- Building in contingencies and variances
- Comparison of Investment Appraisal Methods
Investment Performance
- Key decision-making messages