Professional Certificate of Competency in Financial Fundamentals and Project Investment Decision Making

COURSE OBJECTIVES:


By the end of this course you will be able to:

  • Understand the financial workings of your company
  • Read and explain simple financial statements
  • Understand economic evaluation techniques in project proposals
  • Calculate the financial viability of expenditure proposals
  • Optimise the use of scarce capital on your projects
  • Understand the essentials of discounting cash flows for a project and calculate NPV as well as IRR
  • Manage your company assets more effectively and know when to replace equipment
  • Effectively execute sensitivity studies taking into account risk and uncertainty
  • Rank alternative investment proposals using discounted cash flow techniques
  • Gain the knowledge of the pros and cons of the different economic evaluation methods
  • Prepare project expenditure proposals that can win management approval
  • Make effective decisions under capital rationing situations
  • Communicate effectively with your financial manager peers
  • Manage your personal wealth and finances far more effectively than before
     

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Overview

Finance courses are among the most frequently requested by engineers and technical professionals. One reason is rapidly advancing technology, increasing project complexity and competitive pressures place enormous demands on you to do the best possible cost estimation and economic evaluation of your engineering projects, products and services. Secondly, people wish to communicate effectively with finance personnel and in the board room, but don’t understand the language.

Finance is, in fact, uncomplicated. T he main problem is that accountants (as with other specialists in their fields) communicate using a language that has much topic-specified jargon. In today’s world financial decisions are coming under increasing scrutiny. It is essential therefore that you have enough information to make effective choices and to drive your engineering projects forward with sound justifications.

This program commences with the basics of finance pertinent to engineers and technical professionals. Basic accounting and finance terms are explained in simple English with an emphasis on the engineering and technology world. Cash flow concepts are discussed and the issue of making appropriate investment decisions is examined, using such techniques as NPV and IRR. Finally, capital budgeting and risk are discussed in an easy-to-understand manner.

This is certainly not an advanced program, but one aimed at providing you with the fundamentals of financial management from a practical engineering and technology perspective.


Course Outline


MODULE 1: Accounting Basics

Fixed and current assets
Current and long term liabilities
Equity
Chart of accounts
Types of accounting books
The double entry system
Debits and credits
Sample transactions


MODULE 2: Financial Statements

Balance Sheet
Income Statement
Cash Flow Statement


MODULE 3: Ratio Analysis

The concept and application of ratios
Liquidity ratios
Leverage (gearing) ratios
Activity ratios
Profitability ratios
Investment ratios


MODULE 4: Investment Decisions and Profitability

Ratios vs. Income Statement and Balance Sheet
Improving Return on Assets (RoA)
Improving Return on Equity (RoE)
SoftSales increases vs. tax savings


MODULE 5: Economic factors

Micro economics
Macro economics
Forecast final cost
Inflation
Business cycles


MODULE 6: Cost Accounting

Direct and indirect costs
Fixed and variable costs
Breakeven analysis
Standard cost accounting
Activity based costing


MODULE 7: Cash Flow Concept

Cash flow model for industrial operations
Depreciation concept
Depreciation methods

  • Straight line
  • Declining balance
  • Years digits

Prediction of cash flow for a project
ProjDiscounted vs. undiscounted cash flows


MODULE 8: The Time Value of Money and Related Concepts

Discounting vs. compounding
Present Value (PV)
Future Value (FV)
Net Present Value (NPV)
Net Future Value (NPV)
Internal Rate of Return (IRR)
Discount Rate, Cost of Capital and Hurdle Rate
Using tables and spreadsheets


MODULE 9: Investment Proposal Ranking Methods

Discounted and undiscounted payback methods
NPV method
IRR method
Benefit to Cost Ratio method
Average Rate of Return method
Incremental (marginal) analysis method


MODULE 10: Capital Management

The capital management process
Profitability and rate-of-return
Capital rationing


MODULE 11: Inflation

Effects of inflation in investment
Effects of inflation in economic evaluation
Effects of inflation on Net Present Value

  • With depreciation
  • Without depreciation


MODULE 12: Risk and Uncertain ties in Economic Evaluation

Sensitivity analysis
Probabilistic sensitivity analysis
Monte Carlo analysis


 

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In Company Online Training Solutions

Special class groups can be arranged on request to match your own schedule. If you have a large number of staff who should complete one of our programs, read more about our In Company Online Training HERE and contact us to assist you further.

 

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Course Fees

What are the fees for my country?

The Engineering Institute of Technology (EIT) provides distance education to students located almost anywhere in the world – it is one of the very few truly global training institutes. Course fees are paid in a currency that is determined by the student’s location. A full list of fees in a currency appropriate for every country would be complex to navigate and, with today’s exchange rate fluctuations, difficult to maintain. Instead we aim to give you a rapid response regarding fees that is customised to your individual circumstances.

We understand that cost is a major consideration before a student commences study. For a rapid reply to your enquiry regarding courses fees and payment options, please enquire via the below button and we will respond within 2 business days.

Enquire abut our online engineering course fees

Engineering Institute of Technology (EIT) Certificate Course Payment Options

Please contact us with your location for certificate fees in the relevant currency. Certificate fees include all live webinars with a professional instructor, 4 technical manuals (as searchable eBooks), course materials, software, postage, assignments and ongoing support. All you need to participate is an internet connection, computer and headset. We have group discounts available for our 3 month certificates.

Engineering Institute of Technology (EIT) Advanced Diploma Course Payment Options

Three payment options are available for the Advanced Diploma courses;

OPTION 1 - PAY UPFRONT

Pay total amount upfront to receive a 5% reduction in fees.

OPTION 2 - PAY IN  SIX INSTALMENTS BY CREDIT CARD

Pay in 6 equal instalments over the duration of the course. First payment at least four weeks before the course starts. Payment dates will be set ahead of time and provided at the start of the course. You would receive the 30 technical reference eBooks in batches over the duration of the course.

OPTION 3 - PAY IN  MONTHLY INSTALMENTS BY CREDIT CARD

Pay in even monthly installments. First payment at least four weeks before the course starts, then one on the same date every month for the remaining period. This option incurs a 2% administration fee. You would receive the 30 technical reference eBooks in batches over the duration of the course.

Discounts are available for group bookings

For a rapid reply to your enquiry regarding courses fees and payment options, please contact us with your name, email address, course title(s), and location using the form below, and we will respond within 2 business days.

Enquire abut our online engineering course fees

 

 

Courses

  1. Professional Certificate of Competency in Project Management for Engineers and Technicians
  2. Professional Certificate of Competency in Specification and Technical Writing
     

Many engineering professionals tend to take on a role which encompasses management (and leadership) tasks at some stage of their career despite enjoying the technical aspects of their career.

Effective management, however, requires formal training and a willingness to learn new skills. All the technical know-how in the world will not deliver a project successfully, i.e. with the required level of quality, within cost constraints and on time. Unfortunately very few engineering professionals have any degree of formal management training, which results in a great deal of personal stress as well as cost blow-outs and other woes.

The lack of training often applies to the 'people skills' required for effective leadership as well. Critical project related activities such as work breakdown, scheduling, cost control and risk management, are important to understand. The 'soft' (but equally important) aspects such as team leadership and contract law are also critical.

The Engineering Institute of Technology (EIT) School of Engineering Management thus focuses on project management with a interest in time, cost and risk management.

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