Course Programme: Day 1
Context for Investments in Projects: A Case for Power Systems.
Overview of Process for Identification of Projects.
Theory-Part I: Concepts from Financial Mathematics.
• Simple Interest and Discount
• Compound Interest
• Amortisation and Sinking Funds
• Evaluation of Cash Flows
Course Programme: Day 2
Theory: Part II: Methods of Evaluation of Investments.
• Payback Methods
• Average Rate of Return
• Internal Rate of Return (IRR)
• Net Present Value
• Profitability Index
• Modified Internal Rate of Return (MIRR)
Theory: Part III: Inflation and Depreciation.
• Consumer Price Index (CPI)
• Producer Price Index (PPI)
• Inflation and Discount Rates
Course Programme: Day 3
Application: Approach to performing evaluation of engineering projects and detailed case studies.
• Evaluation of projects required for statutory/strategic reasons
• Evaluation of a projects that increases capacity, to generate more revenue
• Evaluation of a project considered for reducing operating cost