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EncartaLabs

Evaluation Techniques for Capital Purchase / Capital Budgeting

( Duration: 2 Days )

Efficient allocation of funds is one of the most important managerial decisions. This process involves the firm's decision to invest its funds in long-term assets and other profitable activities. Such investment decisions are of great significance for the firm as they affect its wealth, influence its size, set the pace and direction of its growth and determine its business risk.

Investment decisions involve the most efficient investment of the funds in long-term activities in anticipation of the expected flow of future benefits over a number of years. In the investment decisions, it is the flow of cash - outflow and inflow - and not the accrued earnings which is important. This training programme is developed to improve this understanding of the attendees.

  • Attendees for Capital Purchase / Capital Budgeting workshop, need not be engineers or finance professionals but then you need to put up with juggling with the numbers for two days. Therefore, basic requirement their numerical abilities. Secondly, basic competence in MS Excel is necessary.

This Capital Purchase / Capital Budgeting training course is suitable for Procurement Professionals. Also useful for Managing Directors, Directors, Admin Heads, Entrepreneurs, Self-Independent Business Personnel, and so on.

COURSE AGENDA

1

Day 1 - First Half

  • Understanding the various costs
  • Concept of Total Cost of Ownership (TCO) and its applicability in capital purchase
  • Buy Vs Lease Vs Rent strategies
  • Factors to be considered while buying a Capital Equipment
  • Economic analysis of purchase of capital equipment
  • Types of Capital Purchases
  • Checklist for Selecting Suppliers of Capital Equipment
2

Day 1 - Second Half

  • Tools of comparison for cost analysis
  • What is Indian scenario in Make Vs Buy decisions?
  • Make Vs Buy Decisions
  • Lease Vs Buy Decisions
  • Make Vs Buy Vs Rent decisions
  • Deciding between or among production systems
  • Calculation of Breakeven point
3

Day 2 - First Half

  • Practice Examples on PBP, IRR, ARR, NPV
  • Types of Capital Purchases
  • Economic analysis of purchase of capital equipment
4

Day 2 - Second Half

  • Return on Capital Employed (ROCE) and its limitations

Encarta Labs Advantage

  • One Stop Corporate Training Solution Providers for over 6,000 various courses on a variety of subjects
  • All courses are delivered by Industry Veterans
  • Get jumpstarted from newbie to production ready in a matter of few days
  • Trained more than 50,000 Corporate executives across the Globe
  • All our trainings are conducted in workshop mode with more focus on hands-on sessions

View our other course offerings by visiting https://www.encartalabs.com/course-catalogue-all.php

Contact us for delivering this course as a public/open-house workshop/online training for a group of 10+ candidates.

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