Project Valuation
Category: Corporate Finance
Duration: 5 Days
Related courses : Business planing, budgeting
This five-day course provides participants with a comprehensive understanding of project valuation techniques and methodologies. Project valuation is critical for making informed business decisions, particularly when allocating resources to capital projects. Participants will learn the essential tools for assessing the viability and profitability of projects, including net present value (NPV), internal rate of return (IRR), and payback period. Through hands-on exercises and real-world case studies, participants will be equipped to apply valuation methods to their own projects and make strategic investment decisions.
Learning Objectives
Master the fundamental principles of project valuation.
Select appropriate valuation tools based on project characteristics.
Apply financial models such as NPV, IRR, and payback period to evaluate projects.
Conduct sensitivity analysis to assess project risk and decision-making under uncertainty.
Understand and apply Return on Investment (ROI) calculations.
Use project valuation insights to inform business decisions and resource allocation.
Training Program
Day 1: Introduction to Project Valuation
Overview of Project Valuation
What is project valuation, why it matters, and how it supports business decision-making.Key Concepts in Corporate Finance
Review of fundamental financial concepts: cash flows, discount rates, and capital budgeting.Understanding Project Profitability
Introduction to profitability measures such as NPV and IRR.Practical Case Study:
Evaluate a capital project and determine whether it should be approved based on NPV and IRR calculations.
Day 2: Valuation Methods
Net Present Value (NPV)
Principles and calculation of NPV, and its role in project valuation.Internal Rate of Return (IRR)
How to calculate IRR and interpret its results.Payback Period
Understanding the payback method for project evaluation.Practical Exercise:
Apply NPV, IRR, and payback period techniques to a real-life project and assess its viability.
Day 3: Advanced Valuation Techniques
Project Valuation Without Cash Flow Generation
Techniques for evaluating non-cash-generating projects, including cost-benefit analysis and equivalent annual costs.Sensitivity Analysis
How to analyze the impact of changing variables (e.g., discount rates, cost estimates) on project outcomes.Scenario Planning
Developing best-case, worst-case, and base-case scenarios for project evaluations.Practical Workshop:
Conduct a full sensitivity and scenario analysis for a proposed capital investment.
Day 4: Return on Investment (ROI)
Introduction to ROI
Definition and purpose of ROI in project evaluation.Calculating ROI
How to calculate and interpret ROI, and when it is the most appropriate measure of success.ROI vs. Other Profitability Metrics
Comparing ROI with other valuation tools like NPV and IRR.Case Study:
Evaluate the ROI of a project and compare it to other profitability metrics to support investment decisions.
Day 5: Comprehensive Project Evaluation and Case Study
Comprehensive Project Valuation
Bring together all the tools and techniques from the previous sessions to conduct a full project valuation.Real-Life Case Study
Apply NPV, IRR, ROI, and sensitivity analysis to a real-world project. Participants will work in groups to present their findings and recommendations.Group Presentation:
Present a project valuation report to senior management, showcasing the valuation methodology, results, and strategic recommendations.
Key Points
Numerous practical examples illustrating the different studied concepts
Practical cases to draw parallels with the concepts learned
Who Should Attend This Training
Corporate finance professionals.
Investment analysts and project managers.
Business leaders responsible for capital budgeting and resource allocation.
Professionals seeking to improve their project evaluation and decision-making skills.
Prerequisities
Basic knowledge of corporate finance is required.
Prior experience in financial modeling or project management is helpful but not mandatory.
Teaching Methods
Training structured around skill transfer
Acquisition of operational skills through practice and experimentation
Collaborative learning during synchronous sessions
Multi-stage learning path to allow engagement, learning, and transfer
Training promoting participant engagement for better anchoring of lessons
Satisfaction and Evaluation
Skill evaluation will be conducted throughout the training by the participant (self-evaluation) and/or the trainer according to the training methods.
Online training evaluation on your participant space:
Immediate evaluation at the end of the training to measure your satisfaction and perception of skill improvement against training objectives. With your agreement, your overall rating and comments will be published on our site via Verified Reviews.
Post-training evaluation 40 days later to validate the transfer of your acquired skills in the workplace
Attendance tracking and issuance of an individual training certificate or a certificate of completion
LONDON
128 City Road, EC1V 2NX London
PARIS
38 Rue Boulard, 75014, Paris