Investment Appraisal Workshop by Gerald Peries A/L V. A. Peries
Date: 14 & 15 October 2019 (Monday & Tuesday)
Time: 9:00am to 5:00pm
Venue: Hotel Istana City Centre Kuala Lumpur
Introduction:
The efficient allocation of capital resources is a very critical function for any firm. This involves the decision to invest in long-term assets, examples would include constructing a plant, purchasing a new machine, launching a new service or opening a new branch. 

These decisions are important to the firm because in order to add value to the organisation and to its shareholders’ the firm must ensure that its capital is effectively utilised as the performance of the firm hinges upon this important area.     
Objectives:
At the end of the workshop, participants are able to:

1. Effectively participate at any stage of the project evaluation process.
2. Understand the process of evaluating projects and appreciate their role and contribution towards accepting attractive projects.
3 Understand the various cost that are involved in projects.
4. Prepare project budgets and learn the techniques to monitor and control the project
5. Forecast the relevant cash flows of projects.
6. Apply appropriate techniques to evaluate the projects’ cash flows and make appropriate recommendations.
7. Appreciate the importance of cost of funds/capital for the organisation and its importance in project evaluation.
8. Incorporate risk in project evaluation by applying various risk management techniques
Program Content:
MODULE 1: INTRODUCTION AND TYPES OF COST
• What is Capital Investment or Capital Budgeting?
• Importance of Capital Investment
• Types of  capital investment projects
• Cost classification  
 - Direct & indirect cost
 - Fixed, variable & mixed cost
• Break-Even Point  - Importance of knowing BEP in advance.
• BEP as a planning technique.
• Cost-volume- profit relationship
• Exercise

MODULE 2: PROJECT CASH FLOWS
• Forecasting relevant incremental project cash flows
• Sunk cost
• Opportunity cost
• Erosion cost
• Apportioned fixed cost
• Financing cost
• Inflation and working capital
• Exercise

MODULE 3: INVESTMENT APPRAISAL TECHNIQUES
• Independent and mutually exclusive projects
• Payback Period
• Net Present Value
• Internal Rate of Return
• Net Present Value versus Internal Rate of Return
• Profitability index
• Comparing projects with different lives
• Replacement decisions
• Capital rationing 

MODULE 4: VALUATION MODELS & COST OF CAPITAL ESTIMATION  
• Valuation of Capital Components – ordinary shares, preference shares and debt
• Relationship of Valuation to Cost of Capital
• Cost of Capital Components– ordinary shares, preference shares and debt
• Estimation of Weighted Average Cost of Capital
• Optimal capital budget
• Exercise

MODULE 5: PROJECT BUDGETING - INTER-RELATIONSHIPS & PREPARATION
• Overview and benefits of budgeting
• Budget as a planning & control tool
• Human aspects of project budgeting
• Preparing the various budgets

MODULE 6: BUDGETARY CONTROL
• Fixed & Flexible budgets
• Setting standards
• Calculating  variances
• Exercise
              
MODULE 7: RISK IN CAPITAL INVESTMENT

• The important of risk analysis
• Certainty Equivalent Cash Flow
• Risk Adjusted Discount Rate
• Sensitivity Analysis
• Scenario analysis
• Real options
 
Methodology:
• Interactive lectures and discussions
• Case Studies
• Discussions
Who Must Attend:
• Project managers and executives
• Managers and executives responsible for making capital expenditure decisions.
• Accounting and Finance personnel with limited knowledge in this area or who need a refresher course in the process and techniques.
• Managers and executives without formal financial training and require more knowledge on capital investment to perform their jobs more effectively should also attend this course.
• Entrepreneurs who need a better understanding of capital investment should also attend
• Managers, Executives, Engineers, Marketing Staff Production staff and other staff involved directly or indirectly in the process of making Capital Investment Decisions in their organisation.
Investment Fees:
RM1,908.00 (Including 6.00% Service Tax) per participant (Standard Fee)
RM1,590.00 (Including 6.00% Service Tax) per participant (Early Bird Fee, register by 07 October 2019)

Group incentive: Register 3 participants from the same organization, the 4th participant is FREE. (Buy 3 Get 1 Free)
Registration:
There are 3 methods to register for this training:
  1. Kindly click here for online registration. Register Now.
  2. Kindly download this registration form, and fill up all the particulars. Please fax back to +6-03-6270-9993. Click here to download Registration Form (177KB).
  3. Call us to register. Tel: +6-03-6270-9883.
Notes:
This Training Programme is SBL Claimable *Subject to PSMB conditions.

Pembangunan Sumber Manusia Berhad (PSMB)We Are An Approved Training Provider Under SBL Scheme With Pembangunan Sumber Manusia Berhad (PSMB/HRDF)