# Investment Appraisal and Cost-Benefit Analysis

> Evaluate projects with NPV, IRR and economic cost-benefit analysis, and test them for risk before committing capital.

- **Provider:** Afriskora Training Solutions
- **Category:** Project & Programme Management
- **Duration:** 5 days
- **Formats:** classroom (cities across Africa), live virtual (Zoom/Teams), in-house for teams
- **Certificate:** Afriskora Certificate of Completion, verifiable online
- **Booking:** request dates and a quote; invoice and EFT payment
- **Web page:** https://afriskora.co.za/courses/project-management/investment-appraisal-and-cost-benefit-analysis
- **Request dates:** https://afriskora.co.za/request-training?course=investment-appraisal-and-cost-benefit-analysis

## 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

## Learning outcomes

- 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 1: Appraisal framework

- Project cycle and appraisal stages
- Financial versus economic appraisal
- Defining the with-and-without case
- Discount rates

### Day 2: Financial appraisal

- Cash-flow modelling
- NPV, IRR and payback
- Financing and affordability
- Excel model build

### Day 3: Economic appraisal

- Economic costs and benefits
- Shadow pricing
- Valuing time, health and environment
- Distributional analysis

### Day 4: Risk analysis

- Sensitivity and switching values
- Scenario analysis
- Monte Carlo simulation
- Optimism bias

### Day 5: Decision

- Multi-criteria analysis
- Investment committee papers
- Post-investment review
- Group presentations