Capital Budgeting and Financial Analysis Course 2020.

Capital budgeting and Project Valuation (Building a Replacement and Expansion capital investment valuation Model)

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Capital Budgeting and Financial Analysis Course 2020.

What You Will Learn!

Students will learn how to develope the cash flows of capital budgeting projects, how to evaluate, analyze, value, approve and implemente capital budgeting projects in the corporate environment. Students will also learn how to build Capital budgeting models for the different types of projects
You will have a complete understanding of the time value of money and how it is applied in Capita budgeting and project analysis.
You will have an excellent understanding of how companies use the different project valuation criterias such as the NPV critera, the Pay back period Criteria, the Discounted payback period criteria and the Profitability index Critera ae been used in decision making.
You will Have a good understanding of the Net Present Value(NPV) concept and how to use this concept in the real world corporation to make Capital Allocation decisions.
You will learn how to build a project Valuation Model thesame way as it is being done in top corporations for a Replacement Project and for an Expansion Project.

Description

•Capital budgeting is the process that companies use for decision making on capital expenditure projects. They are those projects with a life span of a year and more. Examples could include: Building a new plant, developing a new product, replacing an old manufacturing machine, modifying a supply chain system and introducing new or existing products in new markets. just to name a few.

•A capital budgeting project either creates value or destroys value making it very vital for the growth of any company.

•In this course, you are going to learn how a capital budgeting project is evaluated, analyzed, valued, approved and implemented in a corporate environment. We are also going to show you how capital budgeting models are built in top corporations.

In the first part of the course, we shall teach you the all abouts of capital budgeting. The cash flows that are important for a CAPEX project.

We shall elaborate on important capital budgeting concepts like Opportunity cost, sunk cost, Cost of financing, weighted average cost of capital, Externalities, independent and mutually exclusive projects, salvage Value and project sequencing.

You will have the opportunity to understand the different categories of capital budgeting projects that exists, and the criterias such as net present value (NPV), internal rate of return (IRR), payback period (PBP), discounted payback period and profitability index (PI).

From here, we shall analyze the different groups of cash flows needed in a capital budgeting project valuation which are the initial outlay cash flow, the after-tax operating cash flow, and the terminal value after tax non-operating cash flow.

With a clear understanding of these concepts, we shall build a complete replacement and expansion capital budgeting model from scratch as it is done in the top corporations.

We shall also imcorporate a complete understanding of the time value of money into our analysis.

To conclude you shall learn the detail steps to build a business case of a CAPEX PROJECT.

Who Should Attend!

Financial Analysts, Senior financial Analysts, Finance Specialists, Finance Coordinators, finance managers, managers in the marketing, production and supply chain.

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