Level 20, Office 47, Central Park Towers, DIFC, Dubai, U.A.E.

Capital Budgeting

LEARNING OUTCOMES

The course will review the technical content essential for the financial analysis of long term organic investments to assess viability. Participants will not only be able to evaluate the various methods used but also develop a comprehensive understanding of how to apply them to project decision making within their organizations. Methods to deal with risk connected with project decisions as well as handling situations with capital constraints will also form part of this course. Special situations such as the appraisal of foreign projects and situations where the capital structure of a company is altered due to a project will also be covered.

COURSE CONTENT
  • Capital investment decision-making processes
  • Introduction to investment appraisal techniques
  • The concept of relevant cash-flows and discounting
  • Use of net present value to evaluate project viability
  • Other methods such as Internal rate of return and discounted payback period
  • Incorporating risk into investment appraisal including the use of sensitivity analysis
  • Making the right allocation decisions when capital is in short supply
  • Overview of project appraisal in a foreign currency
  • Assessing projects when capital structure is affected using Adjusted Present Value
  • The choice of an appropriate discount rate for investment appraisals
WHO SHOULD ATTEND?

Those who currently have, or in the future will have, extensive involvement in capital budgeting and in project decision making will find this course useful. The course will benefit anyone requiring a thorough understanding of when and how to use a particular investment appraisal technique to make the correct project decisions. It also provides business leaders and managers with a basis and context to understand and interpret project appraisal results made available to them for decision-making.

DURATION

6 hours (this is run as 2 sessions of 3 hours each or as one full day of 6 hours)