Description
SUITABLE FOR:
Managers, Superintendents, Supervisors, Financial Analysts, Accountants, Investment and Commercial Bankers, Credit Analysts, Investment Analysts, Marketing Managers, Project Managers and Operations Managers.
OBJECTIVES:
By the end of the course, delegates will:
- Have greater understanding of financial information in relation to analysing business performance
- Be aware of the different types and sources of finance available for projects
- Have acquired the skills and knowledge required to evaluate project proposals
- Have a more structured approach to project appraisal, resulting in better managed projects
- Have greater understanding of project risk and be able to use a range of tools and techniques in the identification and assessment of risk
- Understand how to reduce risk in projects
- Be able to construct, analyse and forecast cash flows
SUMMARY:
This programme provides a thorough understanding of the concepts and practical applications of project finance and appraisal. It also examines financial analytical techniques from the conventional wisdom of accounting and finance, as well as those developed by financial economistsThe topics covered include:
Day One
- Understanding financial information
- Key points in a financial statement
- Understanding the annual report
- Measurement and analysis of business performance
- Case studies
- Sources of Funding
- Venture capital, business angels, banks and other institutions
- Share capital
- Loan capital
- Retained profit
- National and International Borrowing
Day Two
- Analysing, interpreting and evaluating project proposals
- Project finance evaluation
- Corporate Appraisal: SWOT analysis, Boston Matrix, Porter’s Five Forces
- Allowing for inflation and taxation
- Capital Expenditure Appraisal
- Accounting Rate of Return
- Payback Period
- DCF Techniques
- Net Present Value
- Exercises
Day Three
- Project risk
- Tools and techniques used to carry out risk identification and risk assessment including sensitivity analysis, the certainty-equivalent approach and decision tree analysis
- Capital rationing – assessing projects where capital is a scarce resource
- The cost of capital – adjusting this for risk
- What is risk and why does it arise?
- The principles of risk management
- Ways of reducing risk
- Case study
Day Four
- Financial Analysis
- Its role in the corporate cycle
- Cost volume/profit analysis
- Cash flow analysis
- Free cash flows
- Construction of cash flows and use of modelling
Day Five
- Financial Analysis (continued)
- Leasing
- The different types of leases and advantages and disadvantages
- The application of DCF methods to projects involving buy or lease problems
- Developing more accurate forecasting methods
- Case studies
