FINANCIAL ANALYSIS OF INVESTMENT PROJECT SCENARIOS WITH APPLICATION OF COMFAR SOFTWARE

The workshop covers the analytical framework of UNIDO’s methodology and tools for project preparation and appraisal necessary to design analyze and optimize investment project scenarios. Participants in this workshop should have intermediate understanding of economics, financial analysis, project appraisal or financing. As a pre-requisite, participants in this workshop should have work experience in identification, formulation, evaluation and promotion of investment projects. Participants who had previously attended COMFAR basic or beginners workshop are welcome to participate. The workshop provides practical training in financial evaluation of the investment proposals with application of comprehensive features of COMFAR. The intermediate workshop program includes among others:

 Introduction to UNIDO methodology on project preparation and appraisal, including COMFAR, its graphical user interface and definition of data input as well as results: reports, tables and graphs;

 Definition of time structure, planning horizon, products or services, nominal capacities, sales and production program, currencies, exchange rates and discounting methods;

 Estimation of fixed investment costs, production costs and working capital requirements;

 Discussion on project options (e.g. joint venture and expansion/rehabilitation projects, cost centers, cost allocation, inflation and escalation);

 Exercising and analyzing practical case studies with application of advanced features of COMFAR;  Analysis of finance required; definition of its structure and conditions (equity, longand short term loans), income tax (tax conditions) and profit distribution;

 Financial analysis (schedules and charts) including: cash flow for financial planning, discounted cash flows, internal rate of return (IRR), net present value (NPV), normal and dynamic payback etc.;

 Projection of financial statements and break-even, sensitivity and parametric analysis

 Practical case studies for new and expansion/rehabilitation projects;

 Analysis using constant and/or current prices (inflation and price escalation) and incremental analysis;

 Introduction to carbon credit features (cleaner development mechanism, joint implementation) of COMFAR.