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

  1. How to apply a range of Investment Appraisal techniques
  2. How to assess relevant and non-relevant costs in Financial decision making
  3. How to quantify the sensitivity of a Financial decision
  4. 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