Investment Projects (Profitability And Risk Analysis For Strategic Decisions)

This accounting training teaches you to master the key techniques and concepts relating to the evaluation of the profitability and risk of investment projects. 

To evaluate an investment project, you must know several concepts: value of money over time, risk measurements, impact of inflation, decision criteria, etc. 

You must know how to use IT tools and have a good knowledge of the sector in which the investment will be made. Here you will develop your ability to pose financial forecasting hypotheses, and you will exercise your judgment in order to find the right answers.

Goals:

• Become familiar with updating techniques.
• Master the methods of analyzing the profitability and risk of investment projects.
• Know how to assess the value of various criteria for decision-making and trace the relevant costs associated with them.

Program:

• Introduction to the principles of discounting
• Definition and analysis of hypotheses
• Illustration of techniques using simple examples
• Investment management analysis
• Identification of the problems to be analyzed and the relevant monetary flows
• Presentation of the updating formulas necessary for the analysis
• Study of profitability criteria and their limits
• Analysis of the following criteria: net present value, internal rate of return and modified internal rate of return, profitability index, payback period, accounting rate of return and sources of conflicts between these criteria
• Interaction of investment and financing decisions in project analysis
• Calculation of the cost of capital and assumptions underlying its use
• Cash flows to shareholders
• Net Present Value to Shareholders Test
• Risk in investment management
• Sensitivity analysis
• Scenario analysis
• Risk assessment using the Monte Carlo method
• Analysis of specific aspects of investment management
• Depending on the needs expressed by participants, several of the following topics may be addressed: equipment replacement and concept of equivalent annual cash flow, taking into account inflation, leasing, business restructuring, business valuation.