Capital Budgeting basics: NPV, IRR and project ranking techniques

Duration 90 Mins
Level Basic
Webinar ID IQW15C6174

• Average Rate of Return calculation and interpretation
• Payback Period calculation and interpretation
• Time value of money concepts
o  Discounted Cash Flow (DCF)
o  Net Present Value (NPV)
o  Internal Rate of Return (IRR)
• Ranking projects with the Profitability Index (PI)
• Lease versus buy
 

Overview of the webinar

Capital investments are long-term investments in which the assets involved have useful lives of multiple years. For example, constructing a new production facility and investing in machinery and equipment are capital investments. 
Capital budgeting is a method of estimating the ?nancial viability of a capital investment over the life of the investment. 
Unlike some other types of investment analysis, capital budgeting focuses on cash ?ows rather than pro?ts. 
Capital budgeting involves identifying the cash in ?ows and cash out ?ows rather than accounting revenues and expenses ?owing from the investment.

Who should attend?

  • Finance Manager
  • Finance Assistant
  • Project Manager
  • Project Assistant
  • Commercial Manager
  • General Manager
Anyone involved in the of capital budgeting process.
 

Why should you attend?

This course introduces the essential elements of the Capital Budgeting process and its evaluation.
Participants will learn how to:
• Articulate the process for acquiring or replacing new capital equipment.
• Explain the time value of money and its impact on decision making.
• Compare leasing and purchasing alternatives for new capital equipment.
• Evaluate capital alternatives using the net present value method.
• Evaluate capital alternatives using the payback period method.
 

Faculty - Mr.Jeff Lockhart

Jeff Lockhart is an international training consultant, specialising in Finance, Commerce and International Trade.
Jeff studied at Sheffield Business School in the United Kingdom obtaining a Post Graduate Certificate in Management (PgC) in 1992, a Diploma in Management Studies (DMS) in 1995 and a Masters Degree in Business Administration (MBA) in 1996. 
Jeff is a Fellow of the Royal Society for the Arts, Manufactures and Commerce (FRSA), the Chartered Institute of Credit Management (FCICM), the Chartered Management Institute (FCMI), and the Institute of Occupational Learning (FITOL). Mr Lockhart is also a PRINCE2 certified Project Manager.
He is a highly experienced Financial Manager and Management Consultant, with extensive knowledge of finance and business management within a multi-disciplined and multi-cultural environment.
He has held several senior level positions for industry-leading international businesses and, since 2001, has operated as a consultant to businesses in the UK, Azerbaijan, Russia, Bulgaria, Kuwait, Oman, Kingdom of Saudi Arabia, United Arab Emirates, Qatar, Malaysia, China, USA, and New Zealand.
 

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