In today’s challenging environment, it is important for businesses to maintain their competitive position. They need to ensure that they are offering attractive, up-to-date, high quality products to their customers. A company that was successful in 2016 cannot assume that their success will continue through to 2020, unless they are prepared to make new investments on a regular basis.
This accessible GLOMACS Advanced Investment Appraisal Workshop will guide you through the process of identifying and selecting new projects, preparing forecasts, and applying evaluation techniques, to ensure that only the best projects are approved for investment.
The GLOMACS workshop will comprise the following key elements:
- Identifying potential new projects that will fit with our medium and long term strategic plans
- Collecting relevant data and constructing financial forecasts relating to our proposed projects
- Applying and calculating four popular appraisal methods, Accounting Rate of Return, Payback Period, Net Present Value, and Internal Rate of Return
- Refining the investment decision by considering the impact of inflation, taxation, and limitation of funds
- Incorporating the effect of risk and uncertainty in the appraisal process
By the end of this GLOMACS workshop, participants will be able to:
- Explain why it is important for us to link new investments to our strategic plan
- Identify and measure the expectations of investors, and explain why these are important to the decision making process
- Set up spreadsheets, and apply the four main investment appraisal techniques to determine whether proposed investments are likely to be worthwhile
- Make necessary adjustments to incorporate the effect of inflation, taxation, and limited funds
- Apply various techniques for dealing with the effect of risk and uncertainty
This GLOMACS Advanced Investment Appraisal Workshop will utilize a variety of proven adult learning techniques to ensure maximum understanding, comprehension and retention of the information presented.
- Clearly presented case study material to illustrate important techniques
- Opportunities for delegates to input personal knowledge and experience into group discussion sessions
- Use of Excel spreadsheets for collection and forecasting of data, and application of evaluation techniques
- Regular exercises and quizzes to check progress
- Group work and group presentations, with guided research
Who Should Attend?
This GLOMACS workshop is suitable to a wide range of professionals but will greatly benefit:
- Management Accounting staff
- Strategic Planners
- Management Consultants
- Senior Managers of any non-financial discipline
Identifying and Constructing Investment Proposals
- Proposing and constructing a range of projects that fit our strategic objectives
- Setting up the accounting spreadsheet for ARR calculations
- Calculating the ARR and comparing with company ROCE
- Incorporating the Time Value of Money – compounding and discounting
- Estimating the company Cost of Debt, Cost of Equity, and Weighted Average Cost of Capital
- Setting-up the relevant cashflow spreadsheets for Payback, NPV and IRR calculations
Evaluating the Investment Proposals
- Calculating the Payback period, NPV and IRR from the cashflow spreadsheet
- Adjusting the Spreadsheets for the Effect of Inflation and Taxation
- Identifying the Optimal Mix of Projects where funds are limited
- Incorporating the Effect of Risk using Probability Analysis Applications
- Measuring the impact of Forecasting Error, using Sensitivity Analysis
- Compensating for environmental uncertainty, using the Risk Premium, Finite Horizon, and certainty equivalent methods
- On successful completion of this training course, GLOMACS Certificate with eligible Continuing Professional Education credits (CPE) from National Registry of CPE Sponsor, will be awarded to the delegates.
- Continuing Professional Education credits (CPE) : In accordance with the standards of the National Registry of CPE Sponsor, one CPE credit is granted per 50 minutes of attendance.
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