The seminar can be held online on the official International Business Academy platform. On completion of the training you will be given a link to the recording, which will be available for one month.
*dates are subject to additional confirmation
excluding VAT
* VAT of 16% will be added to the invoice
Modern corporations implement many investment projects. Preparing an investment project requires extensive knowledge, including in economics, since it reflects various sections and indicators characterising the profitability, risks and effectiveness of the project.
At our seminar you will study the methodology for preparing and writing an investment project, and for analysing and researching it. With the help of a practising expert in this field you will learn to calculate the financial indicators needed to make and justify a sound management decision, and learn about the main mistakes and difficult points in preparing an investment project depending on its industry specifics.
As a result of the training the participant:
— will learn to analyse financial statements
— will be able to independently calculate financial indicators and performance indicators (payback period, return on investment, net present value, internal rate of return, etc.)
— will study the methodology for assessing investment attractiveness
— will learn to analyse the risks of an investment project
— will be able to draw correct conclusions and make management decisions based on financial and investment analysis
The seminar programme is structured to cover all the key aspects of investment project design: from project classification and life cycle to in-depth analytics, financial modelling and risk assessment. Over two days you will progressively master international standards, methods of calculating effectiveness, project portfolio management tools and advanced approaches in investment analysis.
Classification of investment projects and their life cycle
Project classification. The project life cycle. Organising project management. Project audit, monitoring and review. The economic efficiency of an integrated system of planning, budgeting and investment decision-making within the project
International standards for investment project appraisal, project management, project planning and analysis. Preparing the project business plan
UNIDO standards. ISO standards. The PMBOK Guide. Project management standards and the maturity level of management processes (CMM and PM models). The international project glossary and key terminology
Preparing the investment project business plan. Structure of the business plan, main sections.
Selecting and justifying an investment project
The significance and essence of reviewing and selecting investment proposals. Selecting priority projects and managing the investment portfolio. Economic justification of the selection of investment projects. Reducing project risks. Using project opportunities. Establishing the legal, financial and organisational basis for implementing the project
Main project performance indicators. Calculating target indicators and building an integrated project plan based on forecast values
Indicators of overall project effectiveness. Payback period (PB). Discounted payback period (DPB). Net present value (NPV). Profitability index (PI). Internal rate of return (IRR). Modified internal rate of return (MIRR)
Choosing the discount rate and the risk adjustment in its calculation
Groups of control indicators: liquidity and business activity indicators; capital structure, profitability and investment attractiveness indicators
Solving problems from the CFA question bank
Modelling parameters and building an integrated investment project plan
Types of models used in project planning. The essence of the modelling process. Standard modelling tools and techniques. The link between modelling and financial reporting
Day 2The time value of money and the discount rate
The essence of the idea of discounting cash flows
The direct capitalisation model, perpetuity, yield of a perpetual annuity
The universality and limitations of NPV
The discount rate and the cost of capital
Methods of calculating the discount rate
Main models for accounting for risk in calculating the discount rate. Portfolio theory and the CAPM model
Determining the size of the risk premium taking additional factors into account
Calculating WACC online
Analysing and assessing project risks (with a set of examples)
The most important risk metrics
The project risk management system
The risk matrix
Project sensitivity analysis
Project scenario analysis
Project break-even analysis (CVP analysis)
Simulation modelling (the Monte Carlo method)
Decision tree analysis
The principle of matching financial maturities and the principle of risk balance
Four basic valuation models and methods
Asset valuation: the net asset method, replacement method and liquidation value method. The cost approach. Business case
Discounting cash flows and capitalising income. The income approach. Business case
Comparative valuation: the capital market method, the transactions method and the industry multiples method. The market approach. Business case
Valuation using options (contingent claims). Example in Excel (after Aswath Damodaran)
Examples of real investment plans (integrated approach)
Cash flow modelling, the calculation mechanism, fine points and assumptions, typical problems
Promising ideas in project design and investment appraisal
Methodology for conducting analytical work, prototyping, iteration and the use of artificial intelligence systems to forecast project completion on time and budget
