- Format: Classroom
- Duration: 5 days
- Language: English
- Accredited: KHDA,
DATES
| 10 - 14 Jul 2023 | London - UK | US $ 5950 | Enroll now |
| 13 - 17 Nov 2023 | London - UK | US $ 5950 | Enroll now |
| 08 - 12 Jul 2024 | London - UK | US $ 5950 | Enroll now |
| 11 - 15 Nov 2024 | London - UK | US $ 5950 | Enroll now |
INTRODUCTION
The development of new capital projects requires critical decisions to be made using the appropriate decision-making tools and techniques required to analyse prospective projects under conditions of risk and uncertainty. This enables organisations to assess the probability of success, and to decide on whether to continue to develop or abandon a project.
Of critical importance is the systematic and comprehensive evaluation of potential capital project investments, and the development of detailed cash flow analyses to determine as accurately as possible the expected returns to the organisation under varying conditions over the expected economic life of projects. This requires the development of sound, realistic, and carefully structured cash flow projections that reflect both the initial project capital expenditure and the operating cash flows required for successful operation and maintenance of projects over their anticipated economic term.
Globally, many large capital projects frequently overrun or fail to meet their plans, and do not realise both the financial and strategic goals of the organisation, resulting in under-utilised increases in capital funding and operational expenditure, and substantial financial losses to the organisation. This is the inevitable consequence of failing to appropriately apply the tools and techniques of financial management: project evaluation and decision-making, financial planning, capital funding management and cash flow analysis, when considering the development of new capital projects.
This EuroMaTech training course will highlight:
- The decision-making process
- Appropriate project planning and financing
- Financial decision-making tools
- The importance of project risk management
- Identification of, and appropriate responses to risk during project development
TRAINING OBJECTIVES
By the end of this EuroMaTech training course participants will have learned to:
- Manage the investments in and financing of capital-intensive projects
- Evaluate and make financial decisions and be able to present these to stakeholders
- Determine project cash flows and evaluate their risk
- Analyse cash flow and sensitivity factors
- Define and manage project success factors and maximise the project returns on capital
- Identify financial strategies and project risk mitigation strategies
WHO SHOULD ATTEND?
This EuroMaTech Financial Management For Project Development training course is designed for project management and finance professionals, project leaders, project engineers, cost engineers, and other senior project control and business services professionals who are responsible for or involved in evaluating projects and managing cash flow throughout the duration of project development.
TRAINING METHODOLOGY
Attendees will develop project development evaluation skills supported by financial analysis and cash flow management skills through formal and interactive learning methods. This EuroMaTech programme includes numerous examples, team exercises and case studies, and group discussions that will put into practice the skills acquired throughout the course.
This Financial Management for Project Development training course material has been designed to enable attendees to apply their learning in the workplace, and does not assume prior knowledge of the topics covered during the course. New concepts and tools are introduced gradually to enable delegates to seamlessly progress from the fundamentals to the more advanced concepts.
TRAINING SUMMARY
Application of sound project appraisal and quantitative techniques enables organisations to forecast and evaluate with regard to possible future conditions that might jeopardise the chances of project success. The aim is to maximise the organisation's return on capital invested in projects.
Attendees will enhance their understanding of the importance of cash flow and the time value of money, and enhance their project development selection through the application of appropriate DCF appraisal tools such as net present value (NPV) and internal rate of return (IRR).
TRAINING OUTLINE
Day 1 - Project Development Decision-Making
- Project management decision analysis
- Decision-making and risk management
- Project risk and uncertainty
- Options analysis
- Identification of key decision-making factors
- The three key financial statements
- The time value of money, discounted cash flow (DCF), and capital investment
Day 2 - Financial Modelling And Capital Investment Appraisal
- Financial planning and modelling
- Accounting rate of return (ARR) and payback
- Net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), discounted payback, and equivalent annual cost (EAC)
- International project development and risk
- Stakeholders and their level of influence
- Capture requirements
- Scope of work
Day 3 - Cost Of Capital
- Capital expenditure and operating expenditure (Capex/Opex)
- Working capital and short-term financing, long-term financing – equity and debt
- Cost of equity, cost of debt, and weighted average cost of capital (WACC)
- Cost-benefit analysis
- Risk identification, impacts and probabilities
- Cost/volume/profit (CVP) analysis and risk
- Capital project risk assessment and capital rationing
- The importance of cash flow forecasting
Day 4 - Quantitative Analysis And Risk Assessment
- Probability and risk analysis
- Quantitative project risk analysis
- Risk quantification and prioritisation
- Expected monetary value
- Sensitivity and scenario analysis, and simulation modelling
- Tornado diagram
- Programme evaluation and review technique (PERT), Gantt charts and critical path analysis (CPA)
Day 5 - Evaluating And Responding To Risk
- Decision tree analysis
- Root cause analysis (RCA)
- The tools of problem-solving
- Responses to risk
- Return on Investment (ROI)
- Residual income (RI)
- Economic value added (EVA)
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ACCREDITATION
Euromatech is a Knowledge & Human Development Authority (KHDA) approved training institute in Dubai, licensed and approved to deliver training courses in the UAE.
The KHDA is the regulatory authority in the UAE, that oversees administering, approving, supervising, and controlling the activities of various education providers in the UAE. We are proud of our commitment to ensuring quality training courses and status as a KHDA-approved training provider.
Taught by our team of highly qualified trainers, our KHDA approved training courses will provide you with an enriching learning experience and practical knowledge that will help you future-proof your career and support professional development within your organisation.
