Course Objectives:

By the end of this training, participants will be able to:

1. Introduction to Project Valuation and Capital Budgeting

• Understand the importance of capital budgeting in financial decision-making.
• Identify key principles of project valuation and their impact on investment decisions.
• Learn the difference between strategic, operational, and financial investments.

2. Capital Budgeting Techniques and Financial Analysis

• Master key capital budgeting methods, including:
• Net Present Value (NPV) – Discounted cash flow analysis.
• Internal Rate of Return (IRR) – Identifying project profitability.
• Payback Period – Assessing investment recovery time.
• Profitability Index (PI) – Measuring return per dollar invested.
• Modified Internal Rate of Return (MIRR) – Overcoming IRR limitations.
• Understand how to choose the right evaluation technique based on project risk and business goals.

3. Cost of Capital and Discount Rate Determination

• Learn how to calculate the Weighted Average Cost of Capital (WACC).
• Understand how interest rates, inflation, and market risks impact capital budgeting.
• Develop strategies for choosing the correct discount rate for different types of projects.

4. Risk Assessment and Sensitivity Analysis

• Identify financial, operational, and market risks affecting project viability.
• Learn how to conduct sensitivity analysis and scenario planning for uncertain conditions.
• Implement Monte Carlo simulations and decision trees for risk assessment.

5. Capital Budgeting in Practice: Approvals and Funding

• Understand the capital budgeting process in corporate finance.
• Learn how to prepare capital expenditure (CAPEX) justifications and business cases.
• Develop skills to present and defend investment proposals to senior management and stakeholders.

6. Capital Rationing and Portfolio Management

• Learn how to prioritize multiple projects under budget constraints.
• Understand the concept of hard vs. soft capital rationing.
• Optimize project selection based on return, risk, and strategic alignment.

7. Real Options and Advanced Valuation Techniques

• Understand the use of real options in project valuation (timing, expansion, abandonment).
• Learn about alternative valuation techniques, including:
• Adjusted Present Value (APV).
• Economic Value Added (EVA).
• Risk-Adjusted Return on Capital (RAROC).

8. Case Studies and Practical Applications

• Analyze real-world capital budgeting scenarios in different industries.
• Learn from successful and failed investment decisions.
• Develop a capital budgeting action plan for real-life project evaluations.

Target Audience

This course is designed for professionals involved in financial decision-making, capital budgeting, and investment analysis, including:

• Financial Analysts
• Investment Managers
• Corporate Finance Professionals

• Project Managers
• Business Development Managers
• Corporate Strategists

• CFOs and Finance Directors
• Senior Executives and Business Owners
• Board Members and Decision-Makers
• Regulatory & Risk Management Professionals