Project Selection and Investment Appraisal Analysis
Aims & Objectives
The use of Investment Appraisal Techniques to evaluate proposed projects The application of methodologies of the Pay Back Period, Accounting Rate of Return (ARR) and Net Present Value ( NPV)
To understand the concept of the ‘time value of money ‘ and the cost of capital
To evaluate the level of risk relating to a proposed project using the technique of Sensitivity and Risk Analysis
Skills Learned?
The use of the key methods of Investment Appraisal to a proposed project
The use of the ‘time value of money’ concept in the process of investment decision making
Understanding the importance of the targeted rate of return which is referred to as the cost of capital in the context of investment appraisal
The use of the technique of Sensitivity and Risk Analysis in the evaluation of proposed investments
Content
Evaluating the four categories of investments which are Asset Replacement, Cost Saving , Expansion and Reactive
Using a detailed case study to illustrate the full application of the Net Present Value (NPV ) method of investment appraisal
Applying the technique of Sensitivity and Risk Analysis to a proposed project
Comparing the methods of Pay Back Period and the Accounting Rate of Return
Explaining the concept and use of the Cost of Capital in relation to investment appraisal decision making
Who Should Attend?
People who are involved in any aspect of investment projects within a company. Investment decisions can be evaluated using the Net Present Value (NPV ) method which brings a professional and informed focus to the company team responsible for investment decisions .