Capital Project Budgeting

Section one:

• Budgeting and Planning
• The Budget and the Functions of Management.
• Budget as a Planning Tool.
• Budgets and the Key Financial Statements.
• Top-Down versus Bottom-Up Process.

Section two:

• Budget Cycle, Process and Approaches
• The Budget Cycle
• The Characteristics of Successful Budgeting.
• Making the Budget a Value-Adding Activity.
• Top Ten Problems with Budgeting.
• Choosing the Proper Budgeting Approach:
• Incremental Budgeting.
• Zero-Based Budgeting.
• Flexible Budgeting.
• Kaizen Budgeting.
• Activity-Based Budgeting.
• Rolling (Continuous) Budgets and Forecasts.
• The Master Budget and its Components.
• Operating and Capital Budgets.
• Best Practices in Budgeting.
• Creating a User-Friendly Template.

Section three:

• Forecasting Techniques
• Forecasting Models.
• Qualitative and Quantitative Methods.
• Steps in Developing Forecast Models.
• Time Series and Trend Analysis.
• Data Conditioning Techniques.
• Exponential Smoothing and Moving Averages.
• Simple and Multiple Regression Analysis.

Section four:

• Advanced Capital Budgeting Evaluation Techniques
• Business Risk and Cost of Capital.
• Classifying Investment Projects.
• Cash Flow Estimation.
• Analyzing Investment and Operating Cash Flows.
• Time Value of Money Concept.
• The Required Rate of Return.
• Net Present Value (NPV).
• Internal Rate of Return (IRR).
• Multiple Internal Rates of Return.
• Modified Internal Rate of Return (MIRR).
• Profitability Index (PI).
• Pay-Back Period and Discounted Pay-Back Period.
• Capital Rationing.
• Comparing and Evaluating Techniques.
• Sensitivity and Risk Analysis.

Section five:

• Break even Analysis and Optimization Techniques
• Cost-Volume-Profit (CVP) Analysis.
• Using CVP to Reach a Target Income.
• Single Product and Multiple Products Break even Analysis.
• Working with Budget Constraints.
• Building Optimization Models.