About this course
Advanced financial analysis of capital projects, from building incremental cash flows to testing whether returns justify the risk. Delegates work with nominal and real cash flows, tax and inflation effects, working capital, the cost of capital and hurdle rates, and the effect of different funding structures on equity returns. Risk is treated quantitatively through scenario analysis and Monte Carlo simulation.
Why this course
Errors in project cash flows, such as double-counted inflation or the wrong discount rate, can make an unviable project look attractive. Finance teams in utilities, state-owned enterprises and private companies need analysts who can build and challenge these numbers before funds are committed and before lenders or boards are approached.
What delegates will be able to do
By the end of the course, delegates will be able to
- Build incremental project cash flows that correctly treat tax, inflation, working capital and residual value
- Estimate a suitable discount rate using the weighted average cost of capital and project risk
- Compare equity and project returns under different debt and equity funding structures
- Run scenario analysis and a basic Monte Carlo simulation on the main project variables
- Present a financial analysis that sets out returns, risks and funding needs for decision-makers
Who should attend
Financial analysts, project accountants, investment officers and senior project managers who prepare or approve project financial analysis. Delegates need a working knowledge of NPV and IRR and should be confident users of Excel.
How it is delivered
Hands-on Excel workshops in which delegates build and stress-test project cash flow analyses, supported by short facilitator inputs and case discussions. It is available as a public course, in-house at your premises, or as live virtual sessions. Duration and dates are confirmed in your quote, and in-house groups can have the examples and exercises fitted to their organisation.