Advanced Investment Appraisal Workshop

In today’s challenging environment it is important for businesses to maintain their competitive position. They need to ensure that they are offering attractive, up-to-date, high quality products to their customers. A company that was successful in 2016 cannot assume that their success will continue through to 2020, unless they are prepared to make new investments on a regular basis. This advanced training workshop builds on the skills and knowledge acquired in the Investment Appraisal Training workshop to incorporate two important additional factors. The first is how to incorporate the change in risk when a company diversifies into new activities, using the Capital Asset Pricing Model. The second is how to incorporate the effect of different financing structures, and their tax consequences, on the value and acceptability of the project. The training workshop will comprise the following key elements:

• Overview of the basic principles of Net Present Value and Weighted Average Cost of CapitaI (WACC) calculations, as used in normal investment appraisal
• Explanation of the Modigliani and Miller theory, that ‘ WACC will be the same at all levels of gearing’ and why this should be modified to incorporate the benefit of tax savings.
• How to identify the risk level of a diversification project, incorporate its effect into an adjusted WACC, and calculate a risk-adjusted NPV.
• Identifying and calculating the present value of tax savings relating to term loans, instalment loans, and subsidized loans, and incorporating these into Adjusted Present Value (APV) evaluations.
• Separating the project cash flows into ‘risky’ and ‘risk-free’, assessing the value of ‘unused debt capacity’, and applying suitable discount rates to produce the APV.

By the end of this training workshop, participants will be able to:

• Understand why it is important for us to consider, and accurately evaluate, all of the consequential effects of investing in new projects
• Break down any new investment project into all of the significant elements that should be separately evaluated to produce an accurate summary of the value created – the Adjusted Present Value
• Accurately measure the beta risk value of a diversification project from available market information, and make necessary ungearing and regearing calculations to produce a risk-adjusted WACC
• Identify and evaluate the tax benefits of different forms of debt finance, and unused debt capacity, and incorporate these into an Adjusted Present Value calculation
• Distinguish risky from risk-free operating cash flows, and apply suitable discount rates to each, in producing the Adjusted Present Value

At Aztech Saudi, we believe that professional development is the foundation of long-term career success. This training course is expertly designed to equip individuals with practical skills, forward-thinking strategies, and the confidence to navigate today’s dynamic work environments. Each course is delivered by subject matter specialists with extensive industry experience, ensuring that every learning experience is relevant, impactful, and aligned with real-world challenges. Whether you're looking to strengthen your technical expertise, enhance leadership abilities, or stay ahead of industry trends, Aztech Saudi provides the tools you need to elevate your performance and deliver measurable value to your organization.

Our training is more than just knowledge transfer—it’s a catalyst for career transformation. By participating in our courses, professionals gain a competitive advantage in their fields, improve their decision-making capabilities, and position themselves for new opportunities and leadership roles. We take pride in supporting individuals across various sectors and career stages, helping them unlock their full potential through high-quality, globally benchmarked learning experiences. With Aztech Saudi as your development partner, you’re not only investing in education—you're investing in a stronger, more successful future.