Investment Feasibility Analysis and Economic Engineering

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General objectives:

  • Enable the student to make investment decisions under risky conditions

  • Practically understand how to build a model for investment decision making

  • How to create shareholder value

 

Who is it for:

  • Professionals from the financial, commercial, industrial, engineering and other areas involved in the analysis of new investment projects.

 
Expected benefits:

  • After the training, you will be able to:

    • Correctly prepare the cash flow of a new investment.

    • Identify the appropriate discount rate to discount cash flow.

    • Define the best method to analyze a project (TIR, MTIR, NPV or Payback).

Methodology:

  • Fully practical classes using electronic spreadsheets

Program:

Module 1

  • Introduction

    • Concepts and procedures on shareholder value creation (and its linkage with the analysis of new investments)

      • What it is to create shareholder value. Example

      • How to define criteria for estimating the extent of the project's cash flow:
        o For the useful life of equipment or other assets
        o For the commercial life of the new investment
        o By some type of contract (concession or lease, for example)
        o Other criteria

  • Estimate of investments​

  • Fixed investment, depreciation and tax savings

  • Fixed investment, residual value and IR/CSLL on asset sale

  • Pre-operational investment, amortization and tax savings

  • Investment in net working capital

  • Investment expense

  • Frequency of cash flow assembly (month, quarter and year?)

Module 2

  • Estimate of operating cash inflows and outflows

    • Treatment of synergies and incremental cash flows

    • Definition of Perpetuity Residual Value

    • Definition of the capital structure of the new investment

      • Defining the capital structure

      • Use the company's or project's capital structure?

      • Determining the Weighted Average Cost of Capital (WACC)

      • The impact of financial leverage (using financing) on ​​a project's return

      • Use a target capital structure?

      • How to deduct the project's cash flow by CMPC

      • How to discount the project's cash flow at the shareholder's cost of capital

      • Equivalence of methodologies

Module 3

  • Application of Investment Methods

    • Payback: how to calculate, how to interpret and how to conclude whether the project should be accepted or not

    • Payback pros and cons

    • IRR (internal rate of return): how to calculate, how to interpret and how to conclude whether the project should be accepted or not

    • Pros and cons of IRR

    • TIRM (modified internal rate of return): correcting IRR limitations. How to calculate, how to interpret and how to conclude whether the project should be accepted or not

    • NPV (net present value): how to calculate, how to interpret and how to conclude whether the project should be accepted or not

    • How to calculate the profitability index

    • Why is NPV the best of all methods for valuing an investment?

Module 4

  • ​Selection of projects where there is capital restriction

    • NPV or IRR?

    • Practical case using the Solver command in Excel

  • Analyzing cash flows or profit flows?

    • Why is cash more important than profit?

    • Evaluating a project based on cash flow and profit. Any chance of having a different final conclusion

  • Post-audit (project monitoring)

    • Financial monitoring of the project after its implementation (in an inflationary environment). Two reasons to do a post-audit

  • Credit hours: 16h class

  •  

  • Investment, deadline and application procedures

  • comercial@valini.com.br

  • (11)-930111501

  • Possibility of installments in up to 6 installments on the credit card

  • Progressive discount for:

  • 1 registration = 10%

  • 2 registrations = 15%

  • 3 registrations = 20%

  •  

  • The registration fee includes:

  • Printed handout and worksheets

  • Valini Training Certificate

  • Check out the payment facilities for our events. Boleto, Credit Card up to 06 interest-free installments, or Deposit to Account.

  • If you prefer, request an In-Company proposal with the benefits of adapting training to your company's reality!