Correct Project Financial Analysis requires you to think outside the box.
If you are afraid to question the norm you will never build beyond the now!
 
 

“Do you pump water over the hill, build a channel around the hill, dig a tunnel through the hill, or do nothing?”

 

The problem

When deciding whether to undertake a project, what factors influence your decision?

Ideally you should carry out a share analysis for the past 5 years. However, it is not practical and sometimes not even possible to do so. Luckily, as the saying goes there’s more than one way to skin a cat!

The answer is Financial Evaluation, the practical application of using the value of the asset to make or break the project.  This course sets out the framework as well as covering the fundamentals required to assess whether to take on a project.

What am I going to learn?

This refresher course covers the basic principles of project option analysis using financial tools. You will learn how to evaluate project options that have the same end result, for example, analysis of Contractors methodologies in proposals.

The key accounting principles refreshed are:

  • Depreciation
  • Time value of money (discounting)
  • Net Present Value (NPV)
  • Internal Rate of Return (IRR)
  • Investment decision & Cost of Capital
  • Financial report structure (profit and loss statement, balance sheet and cash flow statement)
  • Ratio analysis

The above will help you apply your knowledge to management decision making from a financial perspective within construction organisations.

 

For more information, or to discuss a customised in-house training programme, please contact us, on events@constructing.co.nz

Constructing Excellence training courses, workshops and events may be considered for contributing to a recognised Continuing Professional Development (CPD) scheme as part of personal development. Participants should check their individual scheme requirements.