Assessing the profitability of an investment Training

General accounting notes

• Vocabulary, double-entry method, entries, general overview.
• The accounting plan
• Amortizations and provisions.
• The profit and loss account.
• Handling inventories.
• The balance sheet.
• Tax aspects.

Hands-on work
Hands-on work Examples and exercises in making several accounting entries.

The company as an investment

• The profit and loss account.
• The bottom line. Working capital requirements. Cash. The notion of cash flow.
• Equity. Working capital, net assets, net position. Ongoing capital.
• Basics of financial analysis: Operating ratios and financial structures.

Hands-on work
Case study on an actual case and a tax return: Financial analysis.

Capital investment as a one-time project

• Differences between "capital investment" and "operating expenses", CAPEX and OPEX.
• Characteristics of a project
• Project management criteria.
• Budgets: Creating them, updating them, calculating deviations in time and cost.

Hands-on work
Deviation-calculating exercises.

Capital assets

• Main.
• Secondary.
• Component-based approach.

Amortization: Different methods

• Straight-line.
• Accelerated.
• Other methods.

Investment calculations

• Flows and cash flows.
• Discounting. Concept. Financial calculations: The basics.
• Investment profitability: Concept and calculation.
• Investment-choosing criteria: NPV, IRR, payback period, etc.

Hands-on work
Exercises in choosing different investments.

Financing investments: Benefits and drawbacks

• From equity.
• Buying on credit.
• Leasing.

Hands-on work
Exercises in choosing different financing methods for a single investment.