Capital expenditures represent some of the most expensive decisions a business will ever make, including equipment, relocation, outsourcing, mergers and acquisitions. Building a business case that clearly outlines the purpose, costs, benefits, risks, and opportunities of the decision is critical to making a sound decision.
Join us to learn about the latest and most accurate methods for performing capital expenditure (CAPEX) analyses. Learn how to establish your hurdle rate (minimum acceptable rate of return) for your CAPEX projects and which metric most fairly represents the true expected rate of return on your projects. Receive our standardized CAPEX model for use in performing future analyses.
Publication Date: August 2023
Designed For
CFOs, Controllers, Accounting Managers, CAPEX Committee Members, Cost Accountants, Bank Managers, Auditors and Risk Managers
Topics Covered
- Latest and most accurate methods for performing capital expenditure (CAPEX) analyses
- How to establish your hurdle rate (minimum acceptable rate of return) for your CAPEX projects
- Which metric most fairly represents the true expected rate of return on your projects
Learning Objectives
- Identify your true cost of capital and how it relates to your minimum required rate of return (they are seldom equal)
- Describe how your current return on invested capital could affect the hurdle rate for your CAPEX decisions
- Identify the best financial metrics for determining the viability of your projects using proven discounted cash flow techniques
- Recognize how to use our checklists to help ensure you capture all elements for a complete and thorough analysis
- Explain how to organize the information and perform a thorough analysis
- Explain how to utilize the sensitivity tools available in Microsoft Excel to help you map variation and identify your key input assumptions
Level
Intermediate
Instructional Method
Self-Study
NASBA Field of Study
Finance (2 hours)
Program Prerequisites
Basic understanding of capital budgeting
Advance Preparation
None
Instructor
Miles Hutchinson
Miles Hutchinson is a CGMA and experienced businessman with over 40 years in the field. He has been an auditor with PriceWaterhouseCoopers and the Chief Financial Officer of a $1 billion real estate development company. Miles is a professional speaker and consultant who has presented over 2,500 seminars and training sessions on a myriad of business and financial topics, like financial analysis and modeling, accounting, strategic planning, and compliance with the Sarbanes-Oxley Act. He is recognized as an expert in payroll and sales & use tax as well as financial modeling & analysis, business strategy and communications. He is the author of several useful accounting and tax tools.
His clients include, Abbott Labs, Bank of America, Boston Scientific, Citicorp, Corning, the FBI, the FDA, the Federal Reserve, GE, Pfizer, Siemens, US Marine Corps, and the US Army. Please visit his web sites to see how you can further benefit from his expertise.