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  • Capital Budgeting Decision Analysis and its Modeling using Excel

Capital Budgeting Decision Analysis and its Modeling using Excel

From: 17 December 2019
To: 18 December 2019
Bougenville Room, BDO in Indonesia Prudential Tower lt. 17
Jl. Jend. Sudirman Kav. 79
Jakarta, Jakarta  
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  • Summary

The decision to invest is a continual challenge, requiring insights into a firm's strategic direction, bottlenecks, cash flows and expected risks. The Capital Budgeting Analysis and Modeling 2-day course provides clarity by describing the logic and rationale behind two primary methods for determining whether a proposed investment is acceptable or to evaluate the financial feasibility of investment or capital requests: Net Present Value (NPV) and Internal Rate of Return. Though, both techniques could be calculated instantly with the help of Excel, yet, the “WHY” behind the use of both methods is not always well understood and applied.

To help the Participant get a better understanding in the concept, the Participant will be introduced to the financial modeling to build the Model together with the Trainer.

This is a hands-on training course using laptops which each participant should bring to the class with minimum Excel 2007 installed inside. Participants will be involved actively in exercises during the duration of the course to help the Participant to build their own understanding of the concepts.

Day 1: Understanding the Fundamentals of Capital Budgeting Analysis

  • Present Value and the Net Present Value Decision Rule
  • The NPV is equivalent to Cash Today: Why and How?
  • Choosing among alternative plans
  • NPV and our preferences for cash today versus cash in the future
  • The assumptions behind Internal Rate of Return
  • IRR and the deposit concept behind it: Be Careful!
  • NPV Profile and IRR
  • Excel’s NPV and IRR functions: Common Mistake
  • IRR and Project Financing
  • Annual Percentage Rate and Effective Annual Rate: Why different?
  • Don’t trust the quoted interest rate!
  • NPV and XNPV: What is the difference?
  • IRR and XIRR: What is the difference?
  • Adding Monte Carlo Analysis into Capital Budgeting: Simple Example
  • Advanced topic: Financial Analysis of Long-term Lease vs. Buy/Purchase

Day 2: Building the Basics of a Project Finance Modeling

On Day 2, the Participant will be shown and will build a basic of capital investment project financial modeling and will be introduced to the following modeling topics:

  • Project Assumptions and Timeline
  • Project EBITDA and Capital Expenditures
  • Sources and Uses of Funds
  • Project Free Cash Flow
  • Adding Financing to the Model
  • Pre-Tax Project IRR
  • Post-Tax Project IRR
  • Shareholder’s Equity IRR


Sukarnaen Sutanto

Certified Valuation - Analyst of & trainer in Corporate FInance & Valuation Topics


5.500.000 (normal price)

5.000.000 (early bird, before 10 December)

5.000.000 (for 2 persons or more)




P: 0812-8760-8686

E: [email protected]