CAPEX Analysis using Discounted Cash Flow Techniques (Completed)
Date: Wednesday, August 9, 2023
Instructor: Miles Hutchinson
| Begin Time: |
12:00pm Pacific Time
1:00pm Mountain Time
2:00pm Central Time
3:00pm Eastern Time |
| CPE Credit: |
2 hours for CPAs |
|
Capital expenditures represent some of the most expensive decisions a business will ever make, including equipment, relocation, outsourcing, mergers and acquisitions. Building a business case that clearly outlines the purpose, costs, benefits, risks, and opportunities of the decision is critical to making a sound decision.
Join us to learn about the latest and most accurate methods for performing capital expenditure (CAPEX) analyses. Learn how to establish your hurdle rate (minimum acceptable rate of return) for your CAPEX projects and which metric most fairly represents the true expected rate of return on your projects. Receive our standardized CAPEX model for use in performing future analyses.
Who Should Attend
CFOs, Controllers, Accounting Managers, CAPEX Committee Members, Cost Accountants, Bank Managers, Auditors and Risk Managers
Topics Covered
- Latest and most accurate methods for performing capital expenditure (CAPEX) analyses
- How to establish your hurdle rate (minimum acceptable rate of return) for your CAPEX projects
- Which metric most fairly represents the true expected rate of return on your projects
Learning Objectives
- Identify your true cost of capital and how it relates to your minimum required rate of return (they are seldom equal)
- Describe how your current return on invested capital could affect the hurdle rate for your CAPEX decisions
- Identify the best financial metrics for determining the viability of your projects using proven discounted cash flow techniques
- Use our checklists to help ensure you capture all elements for a complete and thorough analysis
- Organize the information and perform a thorough analysis
- Utilize the sensitivity tools available in Microsoft Excel to help you map variation and identify your key input assumptions
Level
Intermediate
Instructional Method
Group: Internet-based
NASBA Field of Study
Finance (2 hours)
Program Prerequisites
Basic understanding of capital budgeting
Advance Preparation
None
