Finance in the project lifecycle

• • A financial perspective on the project lifecycle
• • Published regulatory accounts
• • The statement of cash flows and the distinction between cash and profit
• • Cash flow forecasting

Developing the business case

• • The business case in the business change lifecycle
• • The contents of a business case

Constructing the financial case

• • Costs and benefits to include in a business case
• • Investment appraisal: payback, NPV and IRR
• • The cost of capital and the weighted average cost of capital
• • NPV, IRR, systemic risk and project risk
• • Return on investment (ROI) and ROI and risk
• • The concept of shareholder value added (SVA)

Budgets and budgeting

• • Budgeting, long-term plans and corporate objectives
• • Cost centres, profit centres and the use of charge-out
• • Capital and revenue expenditure
• • Actual versus budget comparisons and actions
• • Budgetary control

Costs and cost behaviour

• • Fixed and variable costs and the concept of contribution
• • Breakeven analysis and the margin of safety
• • Price/volume calculations and charts
• • Marginal analysis: outsourcing, make or buy decisions
• • Costing approaches and types of cost

Evaluating supplier financial stability

• • Financial analysis and the calculation of ratios
• • Calculating and interpreting ratios
• • The relationship between primary and secondary ratios
• • Principles of shareholder value added (SVA) and economic value added (EVA)
• • The limitations of ratio analysis

Financing service delivery

• • Depreciation of assets: straight-line and reducing balance
• • Depreciation of assets: disposal and upgrade issues
• • Financing and leasing
• • Outsourcing