Cost-Benefit Analysis in Financial Decision Making Training in Johannesburg, South Africa by EduCore Global Skills

Module 1: Foundations of Cost-Benefit Analysis and Financial Decision Making

Core competencies for Foundations of Cost-Benefit Analysis and Financial Decision Making.

• Principles and Purpose of Cost-Benefit Analysis (CBA)
• CBA within Strategic and Financial Decision-Making Frameworks
• Identifying Financial, Economic, Social, and Opportunity Costs
• Defining Benefits, Outcomes, and Decision Criteria
• Establishing the Scope, Baseline, Time Horizon, and Analytical Perspective

Module 2: Cost Identification, Classification, and Measurement

Core competencies for Cost Identification, Classification, and Measurement.

• Direct, Indirect, Fixed, Variable, and Incremental Costs
• Capital Expenditure (CAPEX) and Operating Expenditure (OPEX)
• Sunk Costs, Opportunity Costs, and Avoidable Costs
• Lifecycle Costing and Total Cost of Ownership
• Developing Comprehensive Cost Structures and Cost Estimates

Module 3: Benefit Identification, Valuation, and Monetization

Core competencies for Benefit Identification, Valuation, and Monetization.

• Identifying Direct and Indirect Financial Benefits
• Quantifying Revenue Enhancement and Cost-Saving Benefits
• Valuing Intangible and Non-Market Benefits
• Willingness-to-Pay and Proxy Valuation Techniques
• Avoiding Double Counting and Bias in Benefit Estimation

Module 4: Time Value of Money and Discounted Cash Flow Analysis

Core competencies for Time Value of Money and Discounted Cash Flow Analysis.

• Time Value of Money in Financial Evaluation
• Present Value, Future Value, and Discounting Techniques
• Selecting and Applying Appropriate Discount Rates
• Developing Discounted Cost and Benefit Cash Flows
• Real versus Nominal Values, Inflation, and Timing Considerations

Module 5: Financial Appraisal and Investment Decision Metrics

Core competencies for Financial Appraisal and Investment Decision Metrics.

• Net Present Value (NPV) Analysis
• Internal Rate of Return (IRR) and Modified IRR
• Benefit-Cost Ratio (BCR) and Profitability Index
• Payback and Discounted Payback Periods
• Interpreting and Comparing Investment Appraisal Indicators

Module 6: Incremental Analysis and Alternative Evaluation

Core competencies for Incremental Analysis and Alternative Evaluation.

• Establishing the Business-as-Usual and Counterfactual Scenario
• Incremental Costs and Incremental Benefits
• Comparing Mutually Exclusive Investment Alternatives
• Replacement, Outsourcing, Expansion, and Make-or-Buy Decisions
• Ranking Projects under Capital and Resource Constraints

Module 7: Risk, Uncertainty, and Sensitivity Analysis

Core competencies for Risk, Uncertainty, and Sensitivity Analysis.

• Identifying Financial and Operational Risk Variables
• One-Way and Multi-Variable Sensitivity Analysis
• Scenario Analysis: Base, Best, and Worst Cases
• Break-Even and Switching-Value Analysis
• Probability-Based Analysis and Introduction to Monte Carlo Simulation

Module 8: Economic, Social, and Public-Sector Cost-Benefit Analysis

Core competencies for Economic, Social, and Public-Sector Cost-Benefit Analysis.

• Financial versus Economic Cost-Benefit Analysis
• Economic Pricing, Shadow Pricing, and Market Distortions
• Externalities and Wider Economic Impacts
• Social Costs, Social Benefits, and Distributional Considerations
• Applying CBA to Public Investments, Infrastructure, and Development Programs

Module 9: Building Robust CBA Models and Decision Dashboards

Core competencies for Building Robust CBA Models and Decision Dashboards.

• Structuring Professional Cost-Benefit Models in Excel
• Developing Assumptions, Inputs, Calculations, and Output Schedules
• Integrating NPV, IRR, BCR, Sensitivity, and Scenario Analysis
• Model Validation, Error Checking, and Assumption Testing
• Creating Executive Dashboards and Decision-Support Summaries

Module 10: Strategic Decision Making and CBA Capstone

Core competencies for Strategic Decision Making and CBA Capstone.

• Interpreting CBA Results for Management and Investment Committees
• Integrating Financial, Strategic, Risk, and Sustainability Considerations
• Developing Evidence-Based Investment Recommendations
• Communicating CBA Findings to Executives and Stakeholders
• Capstone: Preparing and Presenting a Complete Cost-Benefit Analysis for an Investment Decision

How is Cost-Benefit Analysis in Financial Decision Making Training delivered?

Cost-Benefit Analysis in Financial Decision Making Training is delivered through instructor-led classroom, live online, private in-house corporate training depending on the selected cohort or organizational arrangement.

Where can I take Cost-Benefit Analysis in Financial Decision Making Training?

Cost-Benefit Analysis in Financial Decision Making Training is available in Johannesburg, South Africa. Current dates are shown only where real sessions have been configured.