Executive Education > Our programs > Seminars > Investment projects: analyzing costs, benefits and risks and making strategic decisions

Investment projects: analyzing costs, benefits and risks and making strategic decisions

Fee

$1,695 + taxes

Length

Two days – 9 a.m. to 5 p.m.

Language

Course given in French

Dates

Offered at HEC Montréal
February 12, 13, 2024

Customized version available

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During this accounting seminar, you will learn key techniques and concepts related to the evaluation of cost-effectiveness and risk in investment projects. Analyzing a prospective investment requires a good grasp of several important notions, including time value of money, risk measurement, the impact of inflation, decision criteria and so forth. You must already have a high level of computer literacy and an in-depth knowledge of the sector in which you will be investing. This seminar will help you enhance your ability to develop financial forecast assumptions and exercise critical judgment in finding effective solutions.

Goals

Become acquainted with present value techniques.
Master cost-effectiveness and risk analysis methods for investment projects.
Learn how to evaluate various criteria in order to make decisions and track the corresponding costs.

Is this for you?

Managers who are already comfortable with accounting and financial vocabulary (failing which Financial Literacy for Non-Financial Managers is an excellent way to prepare beforehand)

This program is for you if:

You play a direct or indirect role in your organization’s investment decisions and initiatives.

Special features

Concrete, value-added tools to measure financial risks and issues as they pertain to investment projects.
Opportunity to be more strategic in the decision-making process.

Testimonials

Instructor:

Julien Le Maux
PhD, MSc (Finance), CFE, C.Adm.
Professor, HEC Montréal

Program

Introduction to the principles of present value

Definition and assumptions
Simple examples to illustrate present value techniques

Investment management analysis

Identify problems for analysis and relevant cash flows
Explain present value formulas to be used in the analysis

Profitability criteria and limitations

Analysis of net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), profitability index, payback time, accounting rate of return and potential conflicts between various criteria

How investment and financial decisions intertwine in the project analysis process

Cost of capital: Calculation method and underlying assumptions
Cash flow to shareholders
Net present value of shareholders’ equity

Investment management risk

Sensitivity analysis
Scenario analysis
Risk analysis using Monte Carlo simulation

Analysis of specific investment management factors

Depending on participants’ individual needs, several themes can also be addressed: equivalent annual coast approach for replacing an existing asset, accounting for inflation, leases, corporate restructuring, business valuation).

Training approach

Computer usage
Exercises

Accreditation

Participants in all of our seminars will receive a certificate of completion from Executive Education HEC Montréal.

Additional information

Laptop computers will be available for use by seminar participants.
Participants will be given a set of Excel files to illustrate the featured concepts and methods.