Dates for this course

Sorry there are no dates available for this course.

Who should attend:
• Business unit and departmental managers evaluating alternative business development projects
• Development engineers planning major changes in capacity
• Product development managers evaluating alternative routes to new business opportunities
• Operating managers proposing capital projects to improve business performance
• Accountants responsible for assessing proposed capital projects
• Procurement personnel involved in evaluating tenders for capital projects

Objectives:
• To describe alternative ways in which projects can be evaluated.
• To understand the information needed for preparing capital project proposals.
• To indicate probable sources of information for project proposals.
• To learn how to set out the project evaluation so that it can be easily amended and updated.
• To understand to principles and application of NPV and IRR discounting models.

Content:
• Identifying projects that will enhance business quality, customer service, profitability, and safety
• Matching the evaluation method to the project – simple methods for small projects
• Types of capital projects – e.g. new capacity, or updating of existing capacity
• Designing the evaluation model – the types of cost and revenue to be defined,
• Gathering information from all relevant functions to build the case
• Determining the acceptable rate of return on a project
• Comparing projects on the basis of Net Present Value and Internal Rate of Return
• Ranking projects where the total costs of proposed investments exceed available funds
• Using discounting models to compare alternative supplier proposals
• Sensitivity analysis in project evaluation
• Discussion of delegates’ experience of developing capital proposals
• Worked examples of investment appraisal methods