Investment Project Evaluation and Risk Analysis
A two-day, hands-on program that teaches robust project valuation, rigorous cash flow forecasting, and advanced risk analysis to make investment decisions that create value.
Course Overview
This practical program trains finance teams and decision makers to evaluate investment projects end to end.
We cover cost of capital and discount rate setting, build reliable project cash flows, and apply multiple valuation techniques, including NPV, IRR, MIRR and profitability index.
The course then moves to risk, with sensitivity and scenario analysis, Monte Carlo simulation, and decision rules for constrained capital.
Real-world case studies and Excel modelling drills ensure participants leave able to present clear, defensible recommendations to senior management.
Course Curriculum
Module 1: Cost of Capital and Project Discount Rates
WACC, CAPM refresher, project vs firm discounting, tax and inflation adjustments
Module 2: Building Reliable Project Cash Flows
Capital expenditure timing, operating cash flows, NOWC, depreciation and tax timing, terminal value
Module 3: Valuation Methods and Practical Issues
NPV, IRR, MIRR, profitability index, NPV profiles and multiple roots, common pitfalls
Module 5: Monte Carlo Simulation and Risk Quantification
Simulation set up, distributions, correlation, interpretation of outputs, sigma and CV
Module 6: Decision Rules and Capital Constraints
Mutually exclusive projects, capital rationing, project portfolio selection, case study and presentation
Who Should Attend
- Project finance analyst or investment evaluation specialist
- Corporate finance and capital budgeting lead
- Infrastructure and project advisory consultant
- Financial modelling and risk analysis expert
Learning Outcomes
After this program participants will build and validate project cash flow models, apply multiple valuation methods, and quantify uncertainty with simulations. They will present actionable, risk-adjusted investment recommendations and gain tools to prioritize projects when capital is constrained.
Career Opportunities
- WACC and project-specific discount rate calculation
- Robust cash flow construction, including NOWC and terminal value design
- NPV, IRR, MIRR, payback and profitability index application and comparison
- Sensitivity, scenario analysis and Monte Carlo simulation interpretation
- Decision rules for capital constrained environments and portfolio selection