Objectives
To master the basic concepts of the financial analysis of investment projects with a view to maximizing added value. To learn how to apply a systematic approach for collecting and processing relevant information. To learn how to adapt this approach to various situations.
Contents
To maximize added value as a performance concept. Valuation of cash flows from shareholder's perspective: identification of relevant cash flows, sunk costs, opportunity costs; determination of working capital needs; tax impact: amortizations, grants, tax credits. Project feasibility. Risk determination for projects, businesses, shareholders. Risk assessment: sensitivity analyses, break-even point, simulations, decision trees. Risk sharing. Determination of discount rate; interactions between investment and financing decisions.