Course details
Course participants will learn methods of economic and financial evaluation in order to:
- Use management control tools to gain a comprehensive overview of the decision-making process and select the project that will increase the profitability of investments.
- Understand the economic and financial principles underlying investment decisions and the value creation process.
- Analyse and estimate the cash flows relevant to investment evaluation.
- Apply the main investment evaluation criteria (NPV, IRR, Payback, profitability index).
- Support the comparison and selection of investment projects in line with the company’s strategic objectives.
- Integrate economic evaluation with the company’s financial and strategic information.
- Correctly interpret the results of investment analyses to support the decision-making process.
- Understand the role of the cost of capital in investment decisions.
- Assess the impact of investment choices on the company’s economic and financial sustainability in the medium to long term.
The Masterclass “Economic and Financial Evaluation of Projects” is organized into 3 sessions:
Session 1
- Framing investment projects within the corporate context: Project portfolio analysis and selection criteria
- Relationship between investment projects and company performance
- Difference between physical, economic, and financial timing and identification of relevant cash flows
- Changes in fixed capital and working capital. Operating and financial cash flows
- Link between investments, balance sheet, and income statement
Session 2:
- Profitability, liquidity, solvency, and efficiency ratios – Financial leverage
- Invested capital and sources of financing: debt capital and equity
- Determination of the Weighted Average Cost of Capital (WACC) and its role in investment decisions
- Economic evaluation methods:
- Payback Period
- Accounting Rate of Return
- Financial evaluation methods:
- Discounted Payback Period
- Net Present Value (NPV)
- Profitability Index
- Internal Rate of Return (IRR)
Session 3:
- Cost classification and contribution margin
- Project budgeting and cost estimation: project P&L
- Economic evaluations for operational and strategic decisions: Break-even analysis and Make-or-Buy analysis
- Principles of Risk Management: Identification, analysis, and management of project risks
During each session, practical exercises and business cases are also included.
Who is it for?
The Masterclass is designed to be accessible and useful to a wide range of audiences and business sectors, targeting anyone who wishes to acquire fundamental skills in interpreting financial statements. Participants will learn how to assess a company’s financial stability, identify opportunities for improvement, and make strategic decisions based on financial data.
Management Control Managers
Project Managers
AFC Managers
Business Consultants