Cost-Benefit Analysis for Portfolio Managers

Description

Introduction
Participants will learn how to justify the project’s expenses concerning the value it creates for the taxpayers. Participants will come to understand a variety of financial techniques necessary to quantify costs and, including present value, return on investment (ROI), and breakeven. Finally, several practical forecasting techniques for revenue, expenses, and project growth are presented, including several decision-making strategies that may help make informed project decisions.

Course Content

• When is a Cost-Benefit Analysis used in projects?
• Cost-Benefit Analysis– explanation of the process
• Cost analysis techniques and benefits
• Time value of money
• Time-based decision criteria measure used in Cost-Benefit Analysis
• Risk analysis in projects
• Decision and sensitivity analysis and the business case

Learning Outcomes

• Prepare a Cost-Benefit Analysis (CBA) estimates and totals
• Forecast cost and benefits over a relevant period for complex projects
• Convert all prices and interests into a common currency
• Calculate the net present value of project net benefits and Perform sensitivity analysis projects and Calculate estimates through forecasting
• Specify asset management information strategy and its use in strategic decision making in projects portfolio
• Evaluate alternatives and select the best value option based on costs and benefits
• Incorporate risk (uncertainty) in calculating costs and benefits
• Utilise Microsoft Excel tools to facilitate compilation and analysis of cost-benefit elements and Reference applicable OMB guidance and Executive Orders
• Make decisions under uncertainty and risk using decision tables and decision trees