3 days EAV/PDP
- Managers and staff concerned with decision affecting medium and long term cash flows (such as investment, disinvestment and acquisitions); people who need to improve their understanding of the theory and the practice of investment analysis.
- This course provides an in-depth understanding of the concepts behind the theory of capital budgeting, leading to an improvement of the analysis in investment profitability studies.
- On completion of the course, the participants will be able to:
- use tools related to an investment profitability analysis,
- incorporate terms of financing plans in equity profitability analysis,
- build complex computer models for cash flow analysis,
- carry out risk analysis of investment projects.
- Basic notions of Microsoft Excel.
Ways and means
- Case studies and exercises derived from actual refinery situations.
Economic criteria 0.75 day
- Value creation, capital cost and discount rate of a company.
- Equity and debt, Corporate finance and return on capital, ROCE and ROE.
- Cash flows and discounting principle.
- Net Present Value (NPV), Internal Rate of Return (IRR), Pay-Out Time (POT), financial exposure, profitability index.
Global profitability analysis 0.75 day
- Analysis of operating cash flows and economic criteria.
- Return on capital employed.
- Profit and Loss accounts and associated project income taxes.
- Impact of taxation and inflation in profitability investment studies.
- Choice of an investment program with a limited budget, scarcity cost of capital.
Risk analysis 0.5 day
- Risk analysis methodology.
- Sensitivity analysis in investment decision, Spider and Tornado charts.
- Limits of sensitivity analysis.
Case studies on investment profitability 1 day
- Octane improvement: implementation of isomerization and/or alkylation process units.
- Hydrocracker project.
- Refinery project.
- Steam cracker project.