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