Commercial Evaluation Of Capital Investments

Most organisations possess sufficient technical capability. However, an understanding of the financial imperatives of the commercial world is also essential. HAIN Consulting can help technical professionals to more effectively contribute to the wealth creation process by increasing their knowledge in this area.

Our program does not seek to turn technical professionals into accountants or economists. It does aim to provide people who have a sound technical grounding with a detailed grasp of the commercial analysis methods that must be used to evaluate new capital expenditure. This is a pragmatic workshop using case studies which directly apply economic tools and principles.

WHAT YOU WILL LEARN:

• The fundamentals of discounted cash flow analysis.
  
  
• How to construct investment, revenue and
  expense cash flows.
  
  
• How to determine net present value and
  discounted cash flow rate of return.
  
  
• How to determine cost benefit ratios.
  
  
• How to evaluate project risks & robustness.
  
  
• How to summarise the evaluation for presentation
  to management.
  
  
• How to evaluate alternatives for repair or
  replacement of equipment.

WHO WILL BENEFIT?

For Technical Professionals involved in the evaluation
or approval of capital investment projects in:

• Resources
• Utilities
• Manufacturing
• Infrastructure
• Building & Construction
• Or Related Industries

No prior financial knowledge is assumed. Our knowledge and extensive experience will guide you through the financial aspects and link them to your technical background.

THE CORE MODULES:

1. The Fundamentals
- Financial Concepts & Statements
- Interest & Economic Equivalence
- Depreciation & Taxation
- Present Value & Rate of Return
- Cost Benefit Analysis
- Work group practice with Case Studies

2. Practical Application & Risk Analysis
- Generalised Analysis Spreadsheets
- Incorporating Risk & Uncertainty
- Risk Sensitivity and Simulation
- Cost of Capital & Hurdle Rates
- Capital Budgeting Decisions
- Work group practice with Case Studies

3. Advanced Application & Presentations
- Financial Options & Impact of Inflation
- Equipment Replacement Decisions
- Operating Cost Models using Real Data
- Presenting Analyses to Management
- Work group practice with Case Studies

FORMAT:

This workshop can be customised to your needs and delivered in a 1, 2 or 3-day format.