INVESTMENT APPRAISAL & CAPITAL BUDGETING TRAINING COURSE

COURSE OVERVIEW

Investment Appraisal & Capital Budgeting is a comprehensive professional training programme designed to equip finance professionals, accountants, investment managers, financial analysts, business executives, project managers, and decision-makers with advanced skills for evaluating long-term investment opportunities and making sound capital allocation decisions. The course provides practical knowledge in investment appraisal, capital budgeting, financial analysis, project evaluation, investment decision-making, capital expenditure planning, financial modelling, project finance, corporate finance, investment analysis, and shareholder value creation. Participants will learn how to assess investment proposals, estimate project cash flows, determine investment risks, and select projects that contribute to sustainable organizational growth and financial performance.
The programme provides detailed coverage of Net Present Value (NPV), Internal Rate of Return (IRR), Modified Internal Rate of Return (MIRR), Payback Period, Discounted Payback Period, Profitability Index, Accounting Rate of Return (ARR), cost of capital, Weighted Average Cost of Capital (WACC), discount rates, terminal value, sensitivity analysis, scenario analysis, and risk-adjusted investment appraisal. Participants will learn how to construct project cash flows, distinguish relevant and irrelevant cash flows, account for taxation and depreciation, evaluate working capital requirements, and incorporate inflation, foreign exchange, and financing considerations into investment decisions.
The course further explores capital budgeting techniques, replacement decisions, expansion projects, mutually exclusive investments, capital rationing, project risk analysis, real options, financing decisions, and post-investment performance evaluation. Participants will examine how strategic objectives, financing costs, market conditions, regulatory requirements, technology changes, environmental considerations, and operational risks influence investment decisions. Practical financial models will enable participants to compare competing projects and evaluate their impact on profitability, liquidity, cash flow, enterprise value, and long-term shareholder returns.
Through practical exercises, investment appraisal models, capital budgeting simulations, financial forecasting, project cash-flow analysis, sensitivity testing, scenario modelling, and general business case studies, participants will develop the ability to make evidence-based investment decisions. The programme is particularly valuable for organizations seeking to improve capital expenditure management, investment decision-making, project financial evaluation, resource allocation, financial risk management, project profitability, investment returns, and long-term value creation.

COURSE OBJECTIVES

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

1. Explain the principles and importance of investment appraisal and capital budgeting.
2. Develop relevant cash-flow projections for investment projects.
3. Apply NPV, IRR, MIRR, Payback Period, ARR, and Profitability Index techniques.
4. Calculate and apply the Weighted Average Cost of Capital in investment decisions.
5. Evaluate project risks using sensitivity and scenario analysis.
6. Assess taxation, depreciation, inflation, and working capital effects on project cash flows.
7. Compare mutually exclusive and independent investment projects.
8. Apply capital rationing and project prioritization techniques.
9. Evaluate replacement, expansion, and long-term capital expenditure decisions.
10. Make strategic investment recommendations based on financial and non-financial analysis.

ORGANIZATION BENEFITS

1. Improved capital investment decision-making.
2. Better evaluation and prioritization of investment projects.
3. Enhanced capital expenditure planning and control.
4. Improved project cash-flow forecasting.
5. Stronger financial risk assessment and mitigation.
6. Improved allocation of scarce financial resources.
7. Enhanced understanding of project profitability and investment returns.
8. Better management of long-term capital commitments.
9. Improved financial modelling and investment analysis capabilities.
10. Greater potential for sustainable shareholder value creation.

TARGET PARTICIPANTS

This course is designed for Chief Financial Officers, finance managers, accountants, investment managers, financial analysts, corporate finance professionals, treasury professionals, project managers, business development managers, economists, investment analysts, management consultants, entrepreneurs, senior executives, and professionals responsible for capital expenditure, project evaluation, financial planning, investment decisions, and resource allocation.

COURSE OUTLINE

MODULE 1: FUNDAMENTALS OF INVESTMENT APPRAISAL AND CAPITAL BUDGETING

1. Principles and objectives of investment appraisal
2. Strategic importance of capital budgeting
3. Capital expenditure versus operating expenditure
4. Investment decision-making frameworks
5. Relevant and irrelevant cash flows
6. Investment appraisal process and project selection
   General Case Study: A manufacturing organization evaluates several expansion proposals and establishes investment criteria based on strategic alignment, cash-flow requirements, profitability, risk, and expected shareholder value.

MODULE 2: CASH-FLOW FORECASTING AND COST OF CAPITAL

1. Development of project cash-flow forecasts
2. Initial investment, operating cash flows, and terminal cash flows
3. Depreciation, taxation, and working capital effects
4. Inflation and foreign exchange considerations
5. Cost of capital and Weighted Average Cost of Capital (WACC)
6. Determining appropriate discount rates for investment projects
   General Case Study: A company assesses a new production facility by forecasting capital expenditure, operating revenues, costs, taxes, depreciation, working capital, terminal value, and the appropriate project discount rate.

MODULE 3: ADVANCED INVESTMENT APPRAISAL TECHNIQUES

1. Net Present Value (NPV) analysis
2. Internal Rate of Return (IRR) and Modified IRR
3. Payback Period and Discounted Payback Period
4. Accounting Rate of Return (ARR)
5. Profitability Index and investment ranking
6. Comparing strengths and limitations of appraisal techniques
   General Case Study: A company compares three competing investment proposals using NPV, IRR, MIRR, Payback Period, and Profitability Index to determine which project provides the strongest financial return.

MODULE 4: RISK ANALYSIS AND CAPITAL INVESTMENT DECISIONS

1. Investment risk and uncertainty assessment
2. Sensitivity analysis and critical variables
3. Scenario analysis and alternative assumptions
4. Break-even analysis and margin of safety
5. Risk-adjusted discount rates and certainty equivalents
6. Decision trees and real-options considerations
   General Case Study: A renewable energy project is evaluated under optimistic, base-case, and pessimistic scenarios, with sensitivity testing conducted on energy prices, construction costs, exchange rates, operating costs, and project life.

MODULE 5: ADVANCED CAPITAL BUDGETING DECISIONS

1. Mutually exclusive and independent projects
2. Capital rationing and limited investment resources
3. Replacement and modernization decisions
4. Expansion, diversification, and strategic investments
5. Leasing versus purchasing investment decisions
6. Project timing and phased investment decisions
   General Case Study: A logistics company with limited capital must choose between replacing its existing fleet, expanding warehouse capacity, or investing in a digital distribution platform while considering financial returns and strategic benefits.

MODULE 6: STRATEGIC INVESTMENT EVALUATION AND VALUE CREATION

1. Post-investment review and project performance evaluation
2. Economic Value Added and shareholder value creation
3. Strategic and non-financial investment considerations
4. Environmental, social, governance, and sustainability factors
5. Integrated capital budgeting and investment simulation
6. Preparing professional investment recommendations and board reports
   General Case Study: An organization conducts a post-investment review of a major infrastructure project, comparing actual cash flows, costs, NPV, IRR, operational performance, strategic benefits, sustainability outcomes, and shareholder value against the original investment appraisal.

GENERAL INFORMATION

1. Customized Training: All our courses can be tailored to meet the specific needs of participants.
2. Language Proficiency: Participants should have a good command of the English language.
3. Comprehensive Learning: Our training includes well-structured presentations, practical exercises, web-based tutorials, and collaborative group work. Our facilitators are seasoned experts with over a decade of experience.
4. Certification: Upon successful completion of training, participants will receive a certificate from Foscore Development Center (FDC-K).
5. Training Locations: Training sessions are conducted at Foscore Development Center (FDC-K) centers. We also offer options for in-house and online training, customized to the client's schedule.
6. Flexible Duration: Course durations are adaptable, and content can be adjusted to fit the required number of days.
7. Onsite Training Inclusions: The course fee for onsite training covers facilitation, training materials, two coffee breaks, a buffet lunch, and a Certificate of Successful Completion. Participants are responsible for their travel expenses, airport transfers, visa applications, dinners, health/accident insurance, and personal expenses.
8. Additional Services: Accommodation, pickup services, flight booking, and visa processing arrangements are available upon request at discounted rates.
9. Equipment: Tablets and laptops can be provided to participants at an additional cost.
10. Post-Training Support: We offer one year of free consultation and coaching after the course.
11. Group Discounts: Register as a group of more than two and enjoy a discount ranging from 10% to 50%.
12. Payment Terms: Payment should be made before the commencement of the training or as mutually agreed upon, to the Foscore Development Center account. This ensures better preparation for your training.
13. Contact Us: For any inquiries, please reach out to us at training@fdc-k.org or call us at +254712260031.
14. Website: Visit our website at www.fdc-k.org for more information.