Practical Investment Appraisal
Strategic Review, Sensitivity Analysis, and Real-World Project Evaluation
About This Course
Course Information
This CPD course is designed to help you with investment appraisal tasks in the real world. In essence investment appraisal is about presenting an opportunity to people in a language that they understand; a sales pitch to others to explain the opportunity in front of them in a way that enables them to make an informed decision as to whether or not they agree with the idea.
Certificate on Completion
This course is made up of videos, questions and additional reading materials, and accounts for 2 units of CPD . One unit is the equivalent of one hour of learning.
Course Sections
This course is made up of the following sections:
- Practical investment advice – Part 1 (video)
- Practical investment advice – Part 1 (quiz)
- Practical investment advice – Part 2 (video)
- Practical investment advice – Part 2 (quiz)
What You Will Learn
- Apply the SAF framework (Suitable, Acceptable, Feasible) as a strategic review before running financial calculations
- Calculate and interpret return on capital employed, payback period, and net present value for real-world projects
- Identify the strengths and limitations of each appraisal method, including why payback period alone cannot measure shareholder wealth
- Explain how to determine incremental cash flows, including the treatment of sunk costs, opportunity costs, and working capital
- Apply sensitivity analysis to test how changes in variables like sales volume and costs affect the accept/reject decision
- Describe when a project-specific cost of capital is needed and how non-financial factors should influence the final decision
Who This Course Is For
- Accountants and finance professionals who prepare or review investment appraisals in practice
- Managers who need to present business cases to senior leadership or external investors
- Professionals looking to move beyond textbook methods and apply investment appraisal in a practical setting
Prerequisites
- A basic understanding of discounting and net present value calculations
- Familiarity with financial statements is helpful for working through the cost and revenue examples
Frequently Asked Questions
Course Details
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