| Effective Projects Valuation (Investment Measures)
Benefits and Added Value
The program aims to show the contemporary
approaches in evaluating any corporate project generating a set
of cash flows by discounting these flows and getting its net
present value. While the NPV approach is considered the best one
for evaluating capital budgeting projects, this module would
also introduce the alternative methods for project valuation in
order to have a comprehensive view to project valuation.
Structure
This program will be conducted over five sessions, five
hours per session, i.e. 25 hours (out of Cairo). It will cover
the following topics and issues
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1st Net present value and its use in
evaluating investment projects.
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The concept of net present value.
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Simplifications that help in
calculating NPV.
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How to determine the value of a
project?
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How to determine the cost of a loan?
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How to determine the cost of trade
credit?
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NPV and stocks valuation.
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2nd The Payback period rule.
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When to use
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Problems with the payback method
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3rd The discounted payback period rule
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When to use
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Problems with the payback method
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4th The average accounting return (AAR)
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When to use
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Problems with the period
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5th Internal rate of return (IRR)
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Defining the internal rate of return
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How to use IRR in evaluating projects?
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How to use IRR in evaluating Financing
type of projects.
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Comparing NPV with IRR.
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Multiple rate of return problem..
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Scale problem for mutually exclusive
project
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Timing problem
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6th Modified IRR (MIRR)
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Defining MIRR
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Problems of IRR that is avoided using
MIRR
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Problems of MIRR that is not avoided
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7th Using all the measures to rationalize the financial
decision
Target Participants
This program is targeting, the current and potential
senior level accountants, financial analysts, financial head of
departments, feasibility studies developers, planning and
control officers, and credit and investment officers in banks
and financial institutions.
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