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Price on Enquiry
Price on Enquiry
Delivered Online or In-Person
Delivered at your location
UK Wide
Two days
All levels
Where should management effort be directed? In controlling costs and ensuring proper engineering in live projects? - yes, of course, but true cost control comes by understanding, eliminating and minimising risk prior to a business committing any funds. This course studies the stages required for practical financial and business appraisals of projects and capital expenditure.
This course has two primary objectives:
To impart the knowledge and skills required to ensure as risk-free as possible expenditure of that scarce resource, cash - the investors', governments' or shareholders' money must not be squandered
To improve the quality of the appraisal process in the widest sense - demonstrating how the process of project and capital expenditure appraisal can be used to dramatically improve cost control and deliver as risk-free as possible expenditure
As a result of the course, participants will be able to:
Understand the economics of appraisal
Be in control of their projects from the start
Understand the economics of their projects - and devise the most appropriate mode
Carry out sensitivity analysis and identify risk
Improve their methods of appraisal and approach
Focus on the risk areas and take out risk and control costs before they over-run
The benefits of attending this course will be demonstrable from day one. Thorough appraisals and risk assessment follow through to success in project management and detailed cost control and project management.
Why appraise?
Taking risk out of investment
The short- and long-term results of not appraising business expenditure
The process - overall and stage-by-stage objectives
Understand business and technical risks
Manage resources and time
Do you invest enough time and effort at this stage?
Take out the risks - control costs before you are committed to contracts and action
Checklists
Review of the arithmetic of appraisalThe time value of moneyThe effects of different interest or required ratesThe effects of inflation (or deflation) in prices and costs
Understanding the economics of appraisal is essential
Meaning and use of appraisal measures
Identifying the most appropriate measures for your particular business
Payback
Discounted cash flow measures - NPV and IRR
Other measures - FW, AW, Profitability Index
The meaning of the measures and their application in practice
The effect on decision-making of more intangible benefits
Cost benefit analysis
Ensuring costs are genuine
Measuring intangible benefits
Environmental issues
Consideration of intangible benefits in the appraisal decision-making process
Developing models - examples of spreadsheet models and measures for many different situations
Modelling investment opportunities - summarising outcomes
Sensitivity analysis - identifying, quantifying and taking out risk
The process - managing risk from the outset
Using the process in risk management, negotiating and project management
Take out risk by thoroughly knowing your project - developing your own process