The course will cover the appraisal of projects and investments using the Project Appraisal model. It will focus on the key steps of the capital investment process: defining the project appraisal parameters, underlying assumptions and consideration of the key variables affecting project viability. Participants will gain a thorough understanding of the tools and techniques used in project appraisals, and appreciate the issues in project appraisal as well as the adaptation of the model to real world corporate decision-making: evaluating projects of different lives, replacement choices, investment timing decisions and capital rationing.
The training is designed to take 30 hours; it includes video materials, case discussions and Excel financial models, quizzes, and teamwork. It will focus on practical managerial implications and considerations. Basic knowledge of Excel is essential to complete the course successfully. The language of instruction is English.
- Project Appraisal techniques – Cash flow and Accounting based techniques: NPV, IRR, MIRR, AAR, Payback, Discounted Payback, Profitability Index,
- Critique of techniques – strengths and weaknesses,
- 5 Step Project Appraisal Model,
- Variations in Project Appraisal– Evaluating projects of different lives, Replacement decisions, Investment timing decisions, Capital rationing,
- Risk and uncertainty in Project Appraisal – Types of Project risks, Sensitivity analysis, Scenario analysis, Break-even analysis.
Other topics discussed will include managing uncertainty and risk in project cash flows where techniques such as sensitivity, scenario and break-even analysis are used.
Prerequisites: This course assumes that participants are interested in finance and possess a good understanding of financial statements, financial instruments and capital structure.
During this course the participants are exposed to a number of finance concepts that practitioners in the field use and apply. At the end of the course, participants will be able to
- Provide a comprehensive understanding of the principles and techniques of project appraisal.
- Apply financial models and formulae to evaluate key parameters in the project appraisal models.
- Demonstrate an ability to use MS Excel tools in problem solving.
Start Date: October 30, 2017
End Date: December 8, 2017
Schedule: Mondays and Fridays, 7 PM– 9:30 PM
Duration: 30 hours (12 meetings, 2,5 hours each)
Course Fee: 65,000 AMD (VAT included) for the entire course
Language of instruction: English
About the Instructor: Seda Vardanyan is an experienced professional with 13+ years of working in the area of managerial, financial accounting and tax consulting. She has worked in consulting, auditing and finance fields at local companies, as well as PwC Hungary, General Electric. While doing her MBA at the Central European University (CEU) Seda spent one month visiting a number of innovative organization based in New York City, to complete an individual project on general management, leadership and financial control. Besides professional achievement, she did her research assistantship on the topics of “Directionality of Innovation of Armenia”.
Along with her ACCA and MBA she recently certified as a CEFE Trainer (Competency Based Economies through Formation of Entrepreneurs), a hands-on, interactive a visual methodology used in situational business games.
Enrollment: To enroll in AUA Extension courses, please go through the following steps (see below for the Armenian version):
- Visit im.aua.am.
- Create an account by clicking New User Registration.
- If you are not a new user and already have an AUA account (having previously taken the AUA e-Math Test or applied to AUA), you should log into the account that you had created at that time.
- If you just registered as a new user, you will get an email asking to activate your account.
- Now, for registering to take a course, choose the Extension tab, then Extension Applications, and apply for the course(s) you choose.
- After you register online, your application will be reviewed and you will receive an email acknowledging your application.
- Closer to the course start date, you will receive another email confirming your enrollment, requesting that you make payment before the course start date. The fee can be paid online via credit card or through the EasyPay terminal (located at the entrance to AUA). Alternatively, you may pay the fee via bank transfer to American University of Armenia Fund, account 001-006402-001, HSBC Bank Armenia, indicating your full name (as in the registration) and the course you are paying for.
- The completed application together with the record of payment completes your enrollment.