How do managers decide WHETHER, WHEN and HOW to invest and spend money on projects? What will be the profits and the creation of value?

11 basic principles you need to know about project appraisals (CAPEX)

• Project appraisals are the study and decision-making process on all types of projects (business cases and proposals) in the company to ensure its growth and profit.
• The techniques allow the calculation of the net present value (NPV) created for the company by the project, the internal rate of return (IRR), and the project's payback.
• All the above techniques must be considered together to make the optimal decision.
• The technique brings together experts within the company to decide on projects. 
• It highlights the qualitative and quantitative benefits of each project and which projects should be implemented. 
• It demonstrates that these techniques are completely different from standard budgeting techniques, as they account for the time value of money.
• Each project must reach at least the cost of capital to be valuable.
• The cost of capital (WACC) and IRR are the benchmarks within the company to make financial and strategic decisions.  
• The project's risk can be eliminated by adjusting the cost of capital.
• Project appraisals are the decision-making instrument for the CEO, CFO, and management teams to select and approve projects.
• Every manager or professional who participates in business decisions must have the necessary knowledge to contribute constructively to these crucial decisions.    

The course and the learning outcome

Whether you are a manager evaluating/deciding on projects, or you are in charge of developing project plans, the course teaches you the crucial role that project appraisal plays in financial decision-making and provides tools and techniques for analysing and forecasting the economic viability of your project.

The 2 days are dedicated to developing the skills to evaluate, assess viability, and decide on new projects.

We use AI tools (Claude, ChatGPT, and Copilot) to accelerate analyses, support research, and test assumptions, enabling us to build a stronger and better-substantiated project case.  We learn:

• The rationale behind project appraisals.
• Understand the capital expenditure decision-making process.
• Learn the business case for capital expenditure investments.
• Get to grips with project management principles.
• Capital budgeting techniques and the capital expenditure framework.
• Learn techniques such as Net Present Value (NPV), the internal rate of return (IRR), and the payback method for managerial decision-making.
• Explore the capital investment decision model and the soft side of project decisions.
• Use sensitivity and scenario analyses to build and evaluate alternatives.
• Decide on the discount factor by calculating the firm's cost of capital. 
• Explore the complexity of international capital budgeting.
• Evaluate debt and/or equity financing methods and their impact on the capital structure.
• Understand the importance of reviewing a capital expenditure investment after completion.
• You will be equipped with a comprehensive approach to evaluating or calculating project outcomes.  You will have mastered the latest industry techniques available and feel comfortable defending your project plans to your peers.
• Use AI tools (Claude, ChatGPT, and Copilot) to accelerate analyses, support research, and test assumptions

Recommended background

This course is designed for anyone responsible for setting up new projects or for evaluating and approving them. You could be working for the banking sector, healthcare, retail, construction companies, project contractors, facilities management companies, government and public service offices, public service utilities, commercial banks, project investment funds, project insurance companies, engineering consultants, environmental consultants or development agencies

Course format (Residential and Online)

This course will be taught through a combination of formal instruction, practical, interactive exercises, and case studies to reinforce the concepts covered in each section.

Practice-based learning and critical engagement are key themes across all our courses, enabling delegates to acquire the skills and techniques they can apply immediately.

• "This training gave me a complete framework for project assessments and combined academic and professional skills." – Jan K., Project Manager
• "Complex financial theories clearly explained for both financial and non-financial people." – Mark T., Senior Controller
• "An effective bridge between theory and practical business applications, immediately usable." – Tom R., Project and Investment Advisor
• "CAPEX finally under control thanks to this course." – Lisa M., Financial Analyst
• "Practical, to-the-point, and hugely valuable." – Sophie L., Operations Director