Capital investment decisions involving the procurement of items such as land, machinery, buildings, or equipment are among the most important decisions under
taken by the business managers. These decisions typically involve the commitment
of large sums of money, and they will affect the business over a number of years.
Furthermore, the funds to purchase a capital item must be paid out immediately,
whereas the income or benefits accrue over time. Because the benefits are based
on future events and the ability to foresee the future is imperfect, there is the need
to make a considerable effort to evaluate investment alternatives as thoroughly as
possible. Selecting investments that will improve the financial performance of the
business involves two fundamental tasks: i) economic profitability analysis and ii)
financial feasibility analysis. Economic profitability will show if an alternative is
economically profitable. However, an investment may not be financially feasible:
that is, the cash flows may be insufficient to make the required principal and interest payments. There is need to equip the modern managers with the tools and
techniques to make the right decisions for continued prosperity of the businesses.
HOW PARTICIPANTS WILL BENEFIT
At the end of the course, participants will be able to:
- Conduct investment analysis;
- Describe tender procedures;
- Calculate payback period and Net Present Value;
- Analyze financial statements;
- Conduct investment risk analysis;
- Apply principles of investment management to make rational investment
WHO SHOULD ATTEND?
Project Managers dealing with project selection and appraisal as well as those who are involved in the assessment of financial, economic and social impact of projects. It will specifically benefit those working in the ministries of finance, commerce, industry and agriculture.
The programme will among other things include the following topics:
- Rationale for investment decision;
- Payback period
- Tender procedures
- Net present value;
- Internal/Economic rates of returns;
- Analysis of financial statements;
- Cost control and analysis;
- Sources of project finance;
- Leadership techniques;
- Investment risk analysis and management.