Introduction
Before making important project investment decisions it is key to properly estimate the potential value of a project and quantify its risks using Project Economics.
Therefore you should be able to make a financial model with the right level of detail bearing in mind the intended core decisions.
After that a good presentation of the analysis allows the management / Board of Directors to efficiently make a well-informed decision.
This course is based on working practice and will give the student the most important knowledge and skills to start analysing investment proposals.
Purpose
At the end of this course the participants will be able to independently calculate the economic feasibility of projects and to subsequently present this to allow a well informed decision. Students will also gain practical knowledge and skills that have proven their usefulness in business. In addition, the perspective of governments on decision making can be considered.
Set-up
In order to transfer knowledge dynamically and interactively, exercises around a central case will be used. This course stimulates and expects active participation.
For businesses Project Economics is given as a 3-day crash course.
For universities/HBO we give this subject in 25-35 lecture hours.
Content of Project Economics
- Part 1: Project Valuation – Basics
- Time value of money: inflation and discounting
- Cost estimation: how to get good cost estimates
- Tax calculations: what options are available and how to apply them
- Modeling basics: how to set up a model that is properly auditable
- Decision criteria: NPV, IRR, Payback Period, etc.
- Part 2: Project Risk & Uncertainty / Sensitivities
- Which risks to model regarding a single decision
- Model and present sensitivity analyses based on these risks
- Incremental decisions: interaction with existing projects
- Valuation of risk based investments with uncertain outcomes
- When / how to use probabilistic analysis
- Part 3: Presenting Economics / Investment Decision Making
- Analyses to support key decisions
- Project financing criteria
- Presenting different types of decisions effectively
- Investments to increase sales volumes
- Infrastructure investments
Target audience
The 3-day course is specifically created for managers and professionals involved in the process of preparing and making investment decisions. For example: project managers, project engineers, project economists, project finance staff, consultants and start-ups.
Requirements
- Laptop with Excel and Powerpoint.
- A basic knowledge of financial / economic terminology.
In-company training
SPBI can also realise Project Economics at your company, furthermore there is the possibility to adjust the course to your specific needs. For more information, you can contact us via info@spbi.nl.
Dates for 2025 – Project Economics
 |
| March 5-7 June 11-13 September 17-19 November 19-21 |
Costs
The costs per person are € 2,000 Euro for the 3-day course.
This price excludes 21% VAT and includes course material and a participant certificate as well as coffee/tea and a luxury lunch.
Location
The Hague, Utrecht or elsewhere in consultation.
The Lecturers
Raoul Scheepmaker and Hein Dungelmann. See About Us.