Introduction
Capital budgeting is essential for evaluating long-term investments and ensuring organizational resources are allocated to high-value projects. This course equips participants with the tools to evaluate capital projects, assess investment risks, and select initiatives that support strategic growth.
Course Objectives
- Understand capital budgeting principles and methodologies.
- Evaluate projects using financial and strategic criteria.
- Apply DCF, NPV, IRR, and related investment tools.
- Assess risks and uncertainties in long-term projects.
- Build investment proposals that support organizational decision-making.
Target Audience
- Finance managers and analysts.
- Engineers and project managers.
- Corporate strategy teams.
- Senior managers involved in capital allocation.
- Anyone evaluating long-term investments.
Course Outline
- 5 Sections
- 0 Lessons
- 5 Days
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- Day 1: Capital Budgeting Essentials• Purpose and importance of capital budgeting.
• Identifying and categorizing capital projects.
• Project screening processes.
• Role of capital budgeting in long-term strategy.
• T&T: Project selection tools, screening checklists.0 - Day 2: Financial Evaluation Techniques• NPV, IRR, payback period, and profitability index.
• Cash flow estimation and discounting.
• Choosing the appropriate evaluation method.
• Activity: Evaluate sample investment proposals.
• T&T: Investment appraisal calculators, cash flow templates.0 - Day 3: Risk & Uncertainty in Capital Projects• Sensitivity, scenario, and break-even analysis.
• Understanding risk-adjusted discount rates.
• Probability and decision-tree analysis.
• Case study: High-risk capital project evaluation.
• T&T: Scenario modeling tools, risk analysis frameworks.0 - Day 4: Strategic & Non-Financial Considerations• Environmental, social, and governance (ESG) impacts.
• Strategic alignment and competitive advantage.
• Regulatory and compliance considerations.
• Workshop: Strategic evaluation of real-world projects.
• T&T: ESG evaluation tools, qualitative scoring sheets.0 - Day 5: Presenting & Defending Capital Projects• Preparing comprehensive investment proposals.
• Communicating financial and strategic insights.
• Group presentations: Capital budgeting project.
• Course wrap-up and certification.
• T&T: Executive proposal templates, presentation scorecards.0
Instructor
Lessons:
