Investment Feasibility Analysis and Economic Engineering
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.
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).
Fully practical classes using electronic spreadsheets
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
Frequency of cash flow assembly (month, quarter and year?)
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
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?
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
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!