Investment Appraisal and Cost-Benefit Analysis
Evaluate projects with NPV, IRR and economic cost-benefit analysis, and test them for risk before committing capital.
- 5 days
- Classroom · Live virtual · In-house
- Afriskora Certificate of Completion
Course overview
Governments, development banks and companies must choose which projects deserve scarce capital. This course covers financial and economic appraisal of investment projects: cash-flow forecasting, discounting, NPV and IRR, economic cost-benefit analysis with shadow prices, sensitivity and risk analysis, and presenting results to investment committees. Exercises use an energy, a road and a water project.
Who should attend
- Project appraisal and investment officers
- Economists and planners
- Development finance professionals
- Finance managers evaluating capital projects
What you will be able to do
- Build project cash-flow forecasts
- Apply NPV, IRR, payback and other appraisal criteria
- Conduct economic cost-benefit analysis
- Assess risk through sensitivity and scenario analysis
- Present investment recommendations convincingly
Course outline
Day 1Appraisal framework
- • Project cycle and appraisal stages
- • Financial versus economic appraisal
- • Defining the with-and-without case
- • Discount rates
Day 2Financial appraisal
- • Cash-flow modelling
- • NPV, IRR and payback
- • Financing and affordability
- • Excel model build
Day 3Economic appraisal
- • Economic costs and benefits
- • Shadow pricing
- • Valuing time, health and environment
- • Distributional analysis
Day 4Risk analysis
- • Sensitivity and switching values
- • Scenario analysis
- • Monte Carlo simulation
- • Optimism bias
Day 5Decision
- • Multi-criteria analysis
- • Investment committee papers
- • Post-investment review
- • Group presentations
Frequently asked questions
How long is the Investment Appraisal and Cost-Benefit Analysis course?
The course runs for 5 days. Daily start and finish times are confirmed in your joining instructions. Live virtual sessions cover the same programme.
Do I receive a certificate?
Yes. Every participant who completes the course receives an Afriskora Certificate of Completion with a unique code that employers can verify online.
Can this course be delivered in-house for our team?
Yes. We can run it at your premises or online for your team, on dates that suit you, and adapt examples and case studies to your sector.
How do I book and pay?
Request dates and we'll send available sessions and a quote. Bookings are confirmed by invoice and paid by EFT. South African clients can include the course in their Workplace Skills Plan.
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