Investment Project

Evaluation I
Target audience
 Beginner investment and financial analysts
 Beginner credit analysts engaged in the evaluation of investment projects
of company- borrowers
 Project team members
 Investors.

Objectives
 To familiarize participants with methods of evaluating investment projects
and evaluation criteria
Duration  To consider the main issues of investment planning:
3 days/ 24 academic  Modeling cash flows generated by project
hours/ 24 CPD units/  The calculation and choice of discount rate
21 CPE credits/  The selection of the horizon and step of calculation of the project
24 PDU units
 To analyze the influence of inflation, tax shield, and project’s start date
on indicators of efficiency of investment
 To provide guidance on the investment control during progress of project.
 To familiarize participants with methods of phases of analysis of the project
(based on a decision tree)
 To assess the sensitivity of project to process of change of various parameters
("tornado" diagram)
 To meet with a multi-criteria selection of projects
 To give the practical skills in order to build mathematical models of investment
projects and their analysis (on computers).

Training methodology
Training participants are provided with specially designed training materials
in Russian.
The theory is illustrated by practical examples on personal computers.
Training participants are provided with practical examples studied in electronic
format that can be used in their practical work.
Investment Project Evaluation I
The Uniqueness of the Training
The training is built on consistent introduction
to the theory of investment projects evaluation.
Particular attention is given to the most frequently
asked questions: the problem of calculation
accuracy and preparation of projected cash flows
of the investment projects, selection and calculation
of the discount rates and choice of the investment
planning horizon.
The following topics are considered:
► The main criteria of investment project
effectiveness and discussion of project choice
issues in different conditions
► Evaluation of projects with different duration
► Methodology of project phases evaluation
(decision tree)
► The concept of risk as an integral part of any
investment, and risk assessment techniques.
► In conclusion MS Excel implementation in
calculating investment performance is disclosed
to the participants on the basis of the ready
model, which is possible for further use in
practice.
Training outline
Day 1
 An integrated approach to planning
and investment management. Investment
projects as means of implementing company’s
strategy
 Stages of investment activity
 Investment project business plan.
The structure of business plan, and main
sections
 Relevance of costs and revenues in the process
of investment project valuation
 Time value of money
 Basic issues on calculation of investment
performance:
 Modeling of cash flows generated
by the project
 Discount rate calculation
 Selection of horizon of investment planning
 Criteria of investment project effectiveness:
NPV, IRR, PI, and DPP. Inconsistency of criteria
and decision guidelines.
Day 2
 The selection of projects under financial
constraints. Formulation of investment portfolio.
 Consideration of inflation factor on investment
project valuation
 Project valuation by cost criteria ( equipment
replacement, choice between buying process
and operating lease, environmental projects)
 Influence of phase input of project on indicators
of effectiveness
 Impact of income tax on the project performance
indicators
 Project ranking
 Investment control of the project
 Calculation of efficiency of project stages
on the example of decision tree method
 Methods of analysis of risks of investment
projects
 Definition of investment projects risk
 Scenario analysis
 Factor analysis, and “tornado” diagram
 Monte-Carlo method.
Day 3
 Applying of MS Excel to investment project
valuation
 MS Excel functions: PV, FV, PMT, NPV, IRR, MIRR,
XNPV, XIRR ,their application and peculiarities
 Modeling and forecasting of project cash flows\
 Finally, Case Study on personal computers:
 Construct a model of investment project
 Calculate discount rate
 Calculate project performance indicators
 To analyze project risks and sensitivity
of project to changes of various parameters
 Conclusion of training: recommendations.
Certificates
Certificates of the EY Academy of Business.
Place and time
Open trainings are conducted at EY Academy
of Business from 9:30 till 16:30.
In-company training
 Preliminary analysis of clients’ training needs,
identification of aims and goals
 Training adaptation upon industry
 Flexible approach to training location
and schedules
 Report on training results by client request.
Recommended training scheme
 Finance for Non-Financial Managers I
 Finance for Non-Financial Managers II
 Project Management
 Investment Project Evaluation I
 Evaluation of Investment Project II: Sources
of Financing and Other Complex Questions
 Financial Modeling I-II
 Risks of Investment Projects: Assessment
and Computer Modeling
 Financial Analysis I-II
 Corporate Finance
 Business Valuation.
How to apply?
Please complete the registration form online
at our web site: ey.com/cis/academy