Real Options in Investment Decisions
Course Overview
• Understand the fundamental concepts of investment appraisal and risk analysis
• Develop skills in evaluating investment opportunities using various techniques
• Learn how to identify, assess, and manage risks associated with investments
• Gain knowledge of the factors influencing investment decisions
• Enhance decision-making abilities in the context of investment management
Training Format:In-class, Virtual, In-house
Location:Lagos, Accra, Nairobi, Kigali
Language:English, French
Nigeria Price:
₦300000
Int'l., (Nigeria) Price:
$1000
Ghana Price:
$4000
Kenya Price:
$5500
Rwanda Price:
$6000
Nigeria Price:₦300000
Int'l., (Nigeria) Price:
$1000
Ghana Price:
$4000
Kenya Price:
$4000
Rwanda Price:
$4000
Nigeria Price: ₦300000
Int'l., (Nigeria) Price:
$1000
Ghana Price: $4000
Kenya Price: $4000
Rwanda Price: $4000
Introduction to Investment Appraisal
• Definition and importance of investment appraisal
• Types of investments (short-term, long-term, fixed, working capital)
• Investment decision-making process
Financial Techniques for Investment Appraisal
• Net Present Value (NPV)
• Concept and calculation of NPV
• Interpretation and decision rules
• Internal Rate of Return (IRR)
• Concept and calculation of IRR
• Comparison with NPV
• Payback Period
• Concept and calculation of payback period
• Advantages and limitations
• Accounting Rate of Return (ARR)
• Concept and calculation of ARR
• Interpretation and decision rules
Risk and Uncertainty in Investment Decisions
• Risk and uncertainty: definitions and differences
• Types of risks in investments
• Business risk
• Financial risk
• Market risk
• Political risk
• Measuring and assessing risk
• Sensitivity analysis
• Scenario analysis
• Monte Carlo simulation
Incorporating Risk into Investment Appraisal
• Adjusting discount rates for risk
• Weighted Average Cost of Capital (WACC)
• Risk-adjusted discount rates
• Certainty Equivalent Approach
• Concept and calculation of certainty equivalents
• Incorporating risk into NPV and IRR
• Concept of real options
• Types of real options
• Option to expand
• Option to abandon
• Option to defer
• Option to switch
• Valuing real options
• Binomial option pricing model
• Black-Scholes option pricing model
1ST BATCH: Tuesday, January 20, 2026 — Friday, January 23, 2026.
2ND BATCH: Tuesday, May 12, 2026 — Friday, May 15, 2026.
3RD BATCH: Tuesday, September 8, 2026 — Friday, September 11, 2026.
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and
illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical
experience, emphasizing the application of learned techniques. This approach ensures that attendees return
to their professional environments equipped with both the competence and self-assurance to effectively
implement the acquired skills in their responsibilities.
