Introduction to Investment Appraisal

In addition to your class tuition and study materials, you will receive the following:


Complimentary e-learning module
Case Study

• A pack of case study questions and case studies that will be used as a basis for group work in class to practically reinforce learning of topics covered during the day

Other Extras

• Suggestions for further reading and study
  
• Certificate of attendance

Level: Introductory


Synopsis:
An essential facet of financial management is the investment decision.This course explores the methods of appraising investments and choosing between alternatives. It progresses onto more complex areas dealing with the implications of tax, inflation and uncertainty. Finally the course will cover two frequently asked management questions - should we lease or buy the assets and what is the optimal time period to replace assets?


At the end of the course participants will be able to: Understand the practical implications of making an investment decision . Understand and apply profit based measures to aid the investment decision . Understand and apply discounted cash flow techniques including NPV and IRR . Deal with the complex issues of taxation, inflation and risk and uncertainty .


Prerequisites:
None


Suitable For:
This course is aimed at management accountants and other managers needing to appraise capital investment proposals.


Introduction

• What is capital expenditure and why it requires special treatment
• Definition of assets
• The capital budgeting process

Profit based investment appraisal

• ROCE
• RI
• EVA
• Payback

Discounted cash flow techniques

• The time value of money
• Present values, annuities and perpetuities
• Net present values
• Internal rate of return

Advanced net present values

• Dealing with taxation
• Dealing with inflation
• Dealing with uncertainty

Further investment decisions

• Lease or buy
• Optimum asset replacement cycles