Financial Decision Making

Background and Context
Avery Dennison is currently preparing to invest in a number of significant Global projects. Finance personnel at Avery Dennison Cork are currently preparing Capital Budget Approval plans to support the investment in these projects. Value Added Consulting has been asked to provide a Training programme which would provide a comprehensive understanding of the major principles of Investment Appraisal and would ensure a consistent approach to project evaluation.

Course Objectives
The objectives of the one-day course are to help participants understand

  • How to apply a range of Investment Appraisal techniques
  • How to assess relevant and non-relevant costs in Financial decision making
  • How to quantify the sensitivity of a Financial decision
  • How to select projects that optimize Return on Investment

Training Programme Content

Introduction to Investment Appraisal                          Exercise

Relevant Costs for Decision Making

  • Sunk Costs
  • Opportunity Costs
  • Incremental Costs                                            Exercise

Financial Decision Making

  • Make or Buy                                                   Exercise
  • Keep or replace                                                           Exercise
  • Scarce Resources                                             Exercise
  • Special Order                                                   Exercise

Projecting Project Cashflows

  • Cost Saving v Cost Avoidance
  • Tax Considerations
  • Depreciation considerations                            Exercise

Long Term Investment Appraisal

  • Payback                                                           Exercise
  • Net Present Value                                            Exercise
  • Internal Rate of Return                                                Exercise
  • Return on Capital Employed                           Exercise

Managing Investment Risk

  • Sensitivity Analysis                                         Exercise
  • Breakeven Point                                              Exercise