Investment Project Evaluation

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Investment Project Evaluation 
(pdf, 350 Kb, 2 pages) 


ACCA Registed CPD-ProviderCPE Sponsors

Duration
3 days / 24 academic hours / 24 CPD units / 21 СPE credits 

Who should attend
  • Senior executives
  • Financial analysts
  • Employees of the strategic planning department
  • Potential investors
  • Credit institution employees engaged in the evaluation of borrowers’ investment projects.
Objectives
  • To introduce participants to modern methods of evaluating investment projects in different industries
  • To examine frequently occurring questions: which cash flows should be considered in calculations; how to choose a discount rate; how to consider profit beyond the project limits
  • To analyze the influence of inflation, tax shield, and project’s start date
  • To model and analyze project risks
  • To teach the principals of building mathematical models of investment projects and of their analysis.
Training methodology
  • Training is conducted in an interactive form and includes a number of case studies.
  • Training participants are provided with specially designed training materials in Russian.

Training outline

Day 1

  • Investment as a method of strategy implementation
  • Sources of funds, cost of capital
  • Time value of money
  • Basic issues related to application of discounting theory
    • Calculation of cash flows
    • Discount rate appropriation
    • Horizon of investment planning

  • Criteria of investment projects’ evaluation: NPV, IRR, PI, DPP. Several application problems and decision guidelines
  • Analysis of projects with non equal duration
  • Investment projects ranking for decision making

Day 2

  • Decisions made on minimum cost basis: environmental projects, equipment replacement, choosing between purchase and leasing
  • Impact of income tax on investment decision
  • Accounting for inflation in projects evaluation
  • Methods of investment projects risk analysis
    • Definition of investment projects’ risk
    • Scenario method and factor analysis
    • Sensitivity analysis, and tornado diagram
    • Monte-Carlo method, calculation of standard deviation (SD) and preparation of histogram
    • Decision tree and it’s implementation for stage projects analysis
    • Real options method and principles of their inclusion in investment projects (elective)

Day 3

  • MS Excel for investment projects evaluation
  • MS Excel functions: PV, FV, PMT, NPV, IRR, MIRR, XNPV, XIRR and their application
  • Tax shield and interest expence adjustment of operational cash flow, used for NPV calculation (elective).

Case Study: calculation of real investment project criteria and project’s risk analysis on personal computers


Certificates
Certificates of the Ernst & Young Academy of Business. 
Recommended training scheme
Place and time
Open trainings are conducted at Ernst & Young Academy of Business from 9:30 to 16:30.
In-company training
  • Preliminary analysis of clients’ training needs, identification of aims and goals
  • Training adaptation industry
  • Flexible approach to training location and schedules
  • Report on the training results.