Briefly

Specifically for non finance professionals who want to not only understand financial time value concepts, but to be able to develop robust and valid investment models using Excel’s time value functions and basic concepts. The workshop covers the Excel 2007 financial functions and DCF principles underpinning the methodology. Several examples are used throughout and a mining case study is developed to illustrate the effect of changes in physical projections such as overburden percentages, ore ratios and pit mixes on the cash projections and the viability consequences for the project.

Detailed Outline - A full one day workshop                                      

For Whom:
Non-financial professionals requiring an understanding of time value concepts in investment appraisal and the structure of investment appraisal models using cash flows and time value methodology.

Assumed expertise:
Applicants should be competent in Excel with a good understanding of how functions and arguments are used in the application. No accounting background is assumed but an understanding of basic financial terminology is assumed.

Contents:
The workshop begins by examining some of the financial functions, and establishing the principles associated with the time value of money. We then continue with:

-Cash flow as distinct from Accruals, how and why we distinguish, what is generally included and excluded.

-The impact of significant non-cash flows on project evaluation.

-Time value of money Present or Future and the need for comparability. Excel has some powerful functions to help calculate these values.

-The discount rate as the weighted average cost of capital, what this rate includes and excludes. How critical is the choice of rate and how to find it using various methods.

-The internal rate of return (IRR) as an alternative indicator - Excel’s functions.

-The importance of end values in project appraisals - valuing terminal values, stock reserves, plant and equipment.

-Linking physical assessments to cash flows to establish project viability - taking physical resource use as a starter for appraisals. A case study in Excel is used to develop these links using Goal Seek and/or Scenario Manager .