Advanced Investment Appraisal Workshop

Improve your Decision-Making Skills with the Latest Forecasting and Evaluation Techniques

Finance, Budgeting & Accounting
International Oil & Gas Supply, Trading & Pricing
Management & Leadership

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 PetroDeep workshop builds on the skills and knowledge acquired in the Investment Appraisal 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 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

Code Venue Fees ($) Dates
OG004 Kuala Lumpur, Malaysia 5500 March 24, 2019 – March 28, 2019
OG004 Rio De Janeiro, Brazil 6500 June 30, 2019 – July 4, 2019
OG004 New York, U.S.A 6500 September 8, 2019 – September 12, 2019

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