Day 1: Cash-Flow Economics and Investment Value

Relevant Cash Flows

• Separate incremental cash flows from allocations
• Include working-capital and terminal effects appropriately
• Exclude sunk costs from forward decisions
• Build cash-flow schedule for investment case

Time Value and Discounting

• Discount future cash flows to present
• Connect discount rates with required return
• Understand timing effects on investment value
• Test valuation sensitivity to timing changes

NPV and IRR in Practice

• Calculate NPV and IRR consistently
• Interpret conflicting rankings between measures
• Recognize limitations of return percentages
• Prepare appraisal summary for two projects

Day 2: Cost of Capital, Funding, and Capital Structure

Cost of Funding

• Distinguish debt and equity return expectations
• Estimate weighted capital cost conceptually
• Adjust rates for differing project risk
• Review assumptions behind a discount rate

Capital Structure Choices

• Analyze leverage benefits and financial constraints
• Estimate resilience and covenant-capacity effects
• Compare funding routes for growth initiative
• Develop a financing rationale for management

Liquidity and Funding Capacity

• Connect investment timing with cash availability
• Stress financing capacity under weaker performance
• Identify refinancing or maturity concentrations
• Set funding conditions for investment approval

Day 3: Valuation and Strategic Investment Choices

Business and Project Valuation

• Connect value with future cash-generation assumptions
• Distinguish enterprise value from equity value
• Use multiples with comparable-business discipline
• Triangulate valuation using multiple method

Strategic and Nonfinancial Value

• Identify investment-created capability and resilience gains
• Avoid value arguments excusing weak economics
• Define measurable conditions for nonfinancial benefits
• Build a balanced appraisal case

Option Value and Staged Commitment

• Preserve flexibility through staged investment
• Define learning milestones before additional funding
• Recognize value in delaying irreversible commitments
• Design a staged investment path

Day 4: Portfolio Construction and Investment Risk

Applied Capital Rationing

• Rank projects when funding is limited
• Consider dependencies between investments
• Avoid selecting projects without portfolio context
• Build a constrained investment portfolio

Sensitivity and Scenario Analysis

• Identify assumptions capable of reversing approval
• Test downside and upside cases
• Estimate break-even values for major drivers
• Prepare risk view for investment committee

Designing Investment Governance

• Clarify sponsorship recommendation and approval rights
• Define evidence at each decision gate
• Document assumptions and conditions of approval
• Establish post-investment review expectations

Day 5: Integrated Investment Decision Laboratory

Investment Case Assembly

• Summarize economics strategic value and exposure
• Show key assumptions and sensitivity ranges
• Present funding implications and alternatives
• Prepare a concise investment memorandum

Challenge and Due Diligence

• Test management assumptions with counterevidence
• Identify missing commercial or operating information
• Revise cash flows when evidence changes
• Record unresolved matters before approval

Funding and Investment Committee Session

• Present case to a simulated committee
• Defend valuation and financing logic
• Adapt proposal under tighter capital limit
• Issue an approval recommendation with conditions

• Investment appraisal models using NPV IRR and sensitivity analysis
• Financing and capital-structure cases with realistic constraints
• Valuation exercises triangulating several evidence sources
• A committee simulation challenging a complete investment memorandum