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Course Outline
Session 1: Interpreting common financial statements
2 hours, live Zoom session
- Income statement
- Balance sheet
- Key financial ratios
Learning Objective: Attendees will be able to calculate key financial ratios and interpret common financial statements.
Significance: Knowledge of these foundational concepts is key to performing due diligence in, for example, selection of suppliers, contractors and business partners.
Session 2: Analyzing capital investment opportunities
2 hours, live Zoom session
- Time value of money / Discounted cash flow
- Discount Rate / Hurdle Rate / Minimum acceptable rate of return (MARR)
- Weighted average cost of capital (WACC)
- Capital expenditures (CapEx)
- Payback
- Net present value (NPV) and Internal rate of return (IRR)
- Depreciation considerations
- Other non-financial considerations
Learning Objective: Attendees will be able to use commonly used methods for analyzing / making capital expenditure decisions.
Significance: This analysis is a key input for evaluating and approving capital projects.
Session 3: Case study
1 hour advance reading / preparation of case study before the live Zoom session
2 hours, live Zoom session
Learning Objective: Attendees will be able to evaluate capital expenditure opportunities.
Significance: Working through a case study is a proven method to build and reinforce practical skills.
Sessions 4 and 5: Estimating costs
2 hours each, live Zoom session
- Fixed, Variable and Absorption cost
- Prime cost, Standard cost, Activity-based cost
- Cost-plus pricing
- Contribution margins
- Sensitivity analysis
Learning Objective: Attendees will be able to estimate different types of costs relevant in a technical context.
Significance: This is critical input for planning and budgeting for projects, products and services.
Session 6: Life cycle costing
2 hours, live Zoom session
- Life cycle costing
- LCCA – Life Cycle Cost Analysis
- Federal project requirements
Learning Objective: Attendees will be able to estimate life cycle cost of a project.
Significance: LCCA provides a full cost view of projects. It is required for many types of federal projects.
Session 7: Case study
1 hour advance reading / preparation of case study before the live Zoom session
2 hours, live Zoom session
Learning Objective: Attendees will be able to analyze life cycle costs.
Significance: Working through a case study is a proven method to build and reinforce practical skills.