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Capital Budgeting & Investment Analysis Training Course

Introduction

Making sound long-term investment decisions is critical for organizational growth and sustainability. This essential training course focuses on Capital Budgeting & Investment Analysis, equipping participants with the methodologies to effectively evaluate long-term investments. You will learn how to apply key techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period to assess the financial viability and attractiveness of capital projects. Mastering capital budgeting & investment analysis empowers organizations to make informed decisions that maximize shareholder value and drive strategic growth.

This intensive training course delves into the practical application of various capital budgeting and investment analysis tools. We will explore how to forecast cash flows, account for the time value of money, and incorporate risk into investment evaluations. Participants will learn how to analyze different investment opportunities, compare their financial merits, and make well-reasoned recommendations based on rigorous analysis. By the end of this training course, you will be equipped with a comprehensive understanding of evaluating long-term investments and making strategic capital budgeting decisions.

Target Audience

  • Finance Managers
  • Financial Analysts
  • Investment Analysts
  • Project Managers
  • Business Development Managers
  • Strategic Planners
  • Anyone involved in long-term investment decisions

Course Objectives

  • Understand the fundamental principles of capital budgeting and investment analysis.
  • Learn how to forecast relevant cash flows for long-term investment projects.
  • Master the concept of the time value of money and its application in investment analysis.
  • Develop skills in calculating and interpreting Net Present Value (NPV) for investment decisions.
  • Learn how to calculate and interpret Internal Rate of Return (IRR) for evaluating investment profitability.
  • Understand the Payback Period method and its limitations in capital budgeting.
  • Explore the Profitability Index (PI) and its use in ranking investment opportunities.
  • Learn how to incorporate risk and uncertainty into capital budgeting analysis.
  • Understand the importance of sensitivity analysis and scenario planning in investment evaluation.
  • Learn how to compare and rank different investment projects based on financial analysis.
  • Explore the impact of capital structure and cost of capital on investment decisions.
  • Understand the qualitative factors that should be considered alongside quantitative analysis.
  • Develop a framework for making sound capital budgeting and long-term investment decisions.

Duration

5 Days

Course Content

Module 1: Foundations of Capital Budgeting and Investment Analysis

  • Understanding the strategic importance of capital budgeting for long-term growth for your module.
  • Identifying different types of capital investment projects.
  • Exploring the steps involved in the capital budgeting process.
  • Understanding the key principles of investment analysis.
  • Reviewing the relationship between risk and return in capital investment decisions.

Module 2: Forecasting Cash Flows for Long-Term Investments

  • Identifying relevant cash inflows and outflows for capital projects for your module.
  • Understanding the difference between initial investment, operating cash flows, and terminal value.
  • Developing techniques for forecasting future cash flows accurately.
  • Incorporating inflation and other economic factors into cash flow projections.
  • Analyzing the sensitivity of cash flows to key assumptions.

Module 3: The Time Value of Money in Investment Analysis

  • Understanding the concepts of present value and future value for your module.
  • Learning how to calculate discount rates and their importance in capital budgeting.
  • Applying discounting techniques to value future cash flows in today's terms.
  • Understanding the impact of compounding on investment returns.
  • Utilizing time value of money principles in investment decision-making.

Module 4: Net Present Value (NPV) Analysis

  • Understanding the concept of Net Present Value (NPV) as a key decision rule for your module.
  • Learning how to calculate NPV using discounted cash flows.
  • Interpreting NPV results to determine the profitability of an investment.
  • Understanding the advantages and limitations of the NPV method.
  • Applying NPV analysis to various capital budgeting scenarios.

Module 5: Internal Rate of Return (IRR) Analysis

  • Understanding the concept of Internal Rate of Return (IRR) as another key decision rule for your module.
  • Learning how to calculate IRR, the discount rate that makes NPV equal to zero.
  • Interpreting IRR results to assess the potential return of an investment.
  • Understanding the advantages and limitations of the IRR method, including multiple IRRs.
  • Comparing and contrasting NPV and IRR for investment evaluation.

Module 6: Payback Period Analysis

  • Understanding the Payback Period method for calculating the time required to recover the initial investment for your module.
  • Learning how to calculate both simple and discounted payback periods.
  • Interpreting Payback Period results and its use as a basic risk assessment tool.
  • Understanding the significant limitations of the Payback Period method, particularly its disregard for cash flows after the payback period.
  • Using the Payback Period as a supplementary tool alongside NPV and IRR.

Module 7: Profitability Index (PI) Analysis and Risk Incorporation

  • Understanding the Profitability Index (PI) and its use in ranking projects with limited capital for your module.
  • Learning how to calculate PI by dividing the present value of future cash flows by the initial investment.
  • Interpreting PI results to identify the most value-generating projects.
  • Exploring methods for incorporating risk into capital budgeting, such as risk-adjusted discount rates.
  • Understanding sensitivity analysis and scenario planning as tools for assessing investment risk.

Module 8: Comparing Projects and Qualitative Factors

  • Developing frameworks for comparing multiple investment projects based on financial analysis results for your module.
  • Understanding how to rank projects when capital is constrained.
  • Recognizing the importance of qualitative factors (e.g., strategic fit, market conditions, regulatory environment) in investment decisions.
  • Incorporating qualitative considerations alongside quantitative analysis in the decision-making process.
  • Developing a comprehensive approach to capital budgeting and investment analysis.

Training Approach

This course will be delivered by our skilled trainers who have vast knowledge and experience as expert professionals in the fields. The course is taught in English and through a mix of theory, practical activities, group discussion and case studies. Course manuals and additional training materials will be provided to the participants upon completion of the training.

Tailor-Made Course

This course can also be tailor-made to meet organization requirement. For further inquiries, please contact us on: Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Training Venue

The training will be held at our Skills for Africa Training Institute Training Centre.

We also offer training for a group at requested location all over the world. The course fee covers the course tuition, training materials, two break refreshments, and buffet lunch.

Visa application, travel expenses, airport transfers, dinners, accommodation, insurance, and other personal expenses are catered by the participant

Certification

Participants will be issued with Skills for Africa Training Institute certificate upon completion of this course.

Airport Pickup and Accommodation

Airport pickup and accommodation is arranged upon request. For booking contact our Training Coordinator through Email: info@skillsforafrica.org, training@skillsforafrica.org Tel: +254 702 249 449

Terms of Payment: Unless otherwise agreed between the two parties’ payment of the course fee should be done 7 working days before commencement of the training.

Course Schedule
Download Schedule PDF
Dates Fees Location Apply
26/05/2025 - 30/05/2025 $1500 Nairobi
Physical Class Online Class
02/06/2025 - 06/06/2025 $1500 Nairobi
Physical Class Online Class
09/06/2025 - 13/06/2025 $1750 Mombasa
Physical Class Online Class
16/06/2025 - 20/06/2025 $1500 Nairobi
Physical Class Online Class
23/06/2025 - 27/06/2025 $1500 Nairobi
Physical Class Online Class
07/07/2025 - 11/07/2025 $1500 Nairobi
Physical Class Online Class
14/07/2025 - 18/07/2025 $3500 Johannesburg
Physical Class Online Class
21/07/2025 - 25/07/2025 $1500 Nairobi
Physical Class Online Class
04/08/2025 - 08/08/2025 $1500 Nairobi
Physical Class Online Class
11/08/2025 - 15/08/2025 $1750 Mombasa
Physical Class Online Class
18/08/2025 - 22/08/2025 $1500 Nairobi
Physical Class Online Class
25/08/2025 - 29/08/2025 $1500 Nairobi
Physical Class Online Class
01/09/2025 - 05/09/2025 $1500 Nairobi
Physical Class Online Class
08/09/2025 - 12/09/2025 $3500 Dar es Salaam
Physical Class Online Class
15/09/2025 - 19/09/2025 $1500 Nairobi
Physical Class Online Class
22/09/2025 - 26/09/2025 $1500 Nairobi
Physical Class Online Class
06/10/2025 - 10/10/2025 $1500 Nairobi
Physical Class Online Class
13/10/2025 - 17/10/2025 $3000 Kigali
Physical Class Online Class
20/10/2025 - 24/10/2025 $1500 Nairobi
Physical Class Online Class
27/10/2025 - 31/10/2025 $1500 Nairobi
Physical Class Online Class
03/11/2025 - 07/11/2025 $1500 Nairobi
Physical Class Online Class
10/11/2025 - 14/11/2025 $1750 Mombasa
Physical Class Online Class
17/11/2025 - 21/11/2025 $1500 Nairobi
Physical Class Online Class
24/11/2025 - 28/11/2025 $1500 Nairobi
Physical Class Online Class
01/12/2025 - 05/12/2025 $1500 Nairobi
Physical Class Online Class
08/12/2025 - 12/12/2025 $1500 Nairobi
Physical Class Online Class
15/12/2025 - 19/12/2025 $1500 Nairobi
Physical Class Online Class
05/01/2026 - 09/01/2026 $1500 Nairobi
Physical Class Online Class
12/01/2026 - 16/01/2026 $1500 Nairobi
Physical Class Online Class
19/01/2026 - 23/01/2026 $1500 Nairobi
Physical Class Online Class
26/01/2026 - 30/01/2026 $1500 Nairobi
Physical Class Online Class
02/02/2026 - 06/02/2026 $1500 Nairobi
Physical Class Online Class
09/02/2026 - 13/02/2026 $1500 Nairobi
Physical Class Online Class
16/02/2026 - 20/02/2026 $1500 Nairobi
Physical Class Online Class
23/02/2026 - 27/02/2026 $1500 Nairobi
Physical Class Online Class
02/03/2026 - 06/03/2026 $1500 Nairobi
Physical Class Online Class
09/03/2026 - 13/03/2026 $3000 Kigali
Physical Class Online Class
16/03/2026 - 20/03/2026 $1500 Nairobi
Physical Class Online Class
23/03/2026 - 27/03/2026 $1500 Nairobi
Physical Class Online Class
06/04/2026 - 10/04/2026 $1500 Nairobi
Physical Class Online Class
13/04/2026 - 17/04/2026 $1750 Mombasa
Physical Class Online Class
20/04/2026 - 24/04/2026 $1500 Nairobi
Physical Class Online Class
04/05/2026 - 08/05/2026 $1500 Nairobi
Physical Class Online Class
11/05/2026 - 15/05/2026 $4500 Dubai
Physical Class Online Class
18/05/2026 - 22/05/2026 $1500 Nairobi
Physical Class Online Class
25/05/2026 - 29/05/2026 $1500 Nairobi
Physical Class Online Class