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Course Overview
This intensive 5-day course has been presented over 775 times to more
than 18,000 people since 1970. Organized for managers, engineers,
geologists, landmen, scientists, accountants and others concerned
with evaluating investments, this course relates to the economic analysis
of income producing and service producing investments using discounted
cash flow analysis criteria and procedures.
The course covers economic analysis techniques used
to optimize the development and operation of mining, petroleum and
non-natural resource production and processing operations.
The textbook, Economic Evaluation and Investment
Decision Methods by Franklin J. Stermole and John M. Stermole, demonstrates
the evaluation techniques presented using a variety of applications
for people with technical and non-technical backgrounds, with or without
previous evaluation experience.
Upcoming Dates
and Locations
Golden, Colorado
March 10-12, 2008 (Three-day course)
Colorado School of Mines campus
Golden, Colorado
May 12-16, 2008
Colorado School of Mines campus
Golden, Colorado
July 21-25, 2008
Colorado School of Mines campus
Golden, Colorado
September 15-19, 2008
Colorado School of Mines campus
Golden, Colorado
October 20-22, 2008 (Three-day course)
Colorado School of Mines campus
Golden, Colorado
November 17-21, 2008
Colorado School of Mines campus
For further information, contact:
Office of Special
Programs and Continuing Education
Colorado School of Mines
Phone
(303) 273-3321
Out-of-state: 800/446-9488, ext.3321
Fax:(303) 273-3314
E-mail: space@mines.edu
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Class Schedule and Requirements
Class hours are 8:00 a.m. - 12:00 p.m. and 1:15-5:00 p.m. Monday through
Thursday. Friday's schedule is 8:00 a.m. - 12:00 p.m.
All participants should bring a financial calculator capable of making NPV and IRR calculations. The Hewlett Packard, HP10BII is the preferred model for its simplicity and price. The HP10BII functionality is incorporated into select examples in the course. Other calculator models including, HP12C (regular or platinum), HP17BII or Texas Instruments BAII Plus are suitable. HP® calculators are available on line at: www.hpshopping.com. Laptops with Excel® are also welcome.
HP is a registered trademark of Hewlett-Packard Company. Excel is a registered trademark of Microsoft Corporation.
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Fee, Registration and Change
Policy
The fee schedule for 2008 courses is as follows: 5-day course: $2,195; 3-day course: 1,495. These fees cover tuition and include a three- textbook
set. Enrollees may cancel or transfer registration ONCE without penalty.
Subsequent cancellations or transfers are subject to a $250 fee.
Substitutions may be made at any time without penalty.
Refunds will not be given for participants who fail to substitute, transfer
or cancel prior to Wednesday noon preceding the start of a course. Sponsor
reserves the right to cancel a course at any time and refund the registration
fee.
Registrants are responsible for their own lodging, food, and travel
arrangements. Click here for accommodations
information and for travel information.
Register
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Detailed Course Outline
Pre-course reading: Participants are strongly encouraged to become familiar
with the material in the "Self-Teaching Manual" for Economic Evaluation
and Investment Decision Methods. This manual will familiarize the
participant with evaluation terminology and the "time value of money"
concepts used in class and will be sent to course registrants about
three weeks before the class begins.
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5-Day
Course |
3-Day
Course |
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Monday: Time
Value of Money, Discount Rates and Decision Criteria
You will learn
to apply the concepts of time value of money in calculating rate
of return (internal rate of return), net present value, ratios
and other criteria. Other topics include understanding calculator
and spreadsheet functions, graphical approaches illustrating the
meaning of rate of return and net present value as well as methods
used to determine an appropriate discount rate. Evaluating service
producing alternatives will be presented including cost analysis
and incremental calculations. |
Monday: Time
Value of Money, Discount Rates and Decision Criteria
You will learn
to apply the concepts of time value of money in calculating rate
of return (internal rate of return), net present value, ratios
and other criteria. Other topics include understanding calculator
and spreadsheet functions, graphical approaches illustrating the
meaning of rate of return and net present value as well as methods
used to determine an appropriate discount rate. Evaluating service
producing alternatives will be presented including cost analysis
and incremental calculations.
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Tuesday: Application
of Decision Criteria, Inflation
The application
of decision criterion to mutually exclusive and non-mutually exclusive
alternatives will be reviewed. This discussion will also introduce
related problems concerning cash flow streams exhibiting a cost-income-cost
pattern and the subsequent dual rates of return and the meaning
of economic results. Application of inflation as it relates to
escalated (or current) and constant (or real) dollar analyses
will be introduced. |
Tuesday: Application
of Decision Criteria, Inflation
The application
of decision criterion to mutually exclusive and non-mutually exclusive
alternatives will be reviewed. This discussion will also introduce
related problems concerning cash flow streams exhibiting a cost-income-cost
pattern and the subsequent dual rates of return and the meaning
of economic results. Application of inflation as it relates to
escalated (or current) and constant (or real) dollar analyses
will be introduced.
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Wednesday:
Inflation, Risk, Sensitivity Analysis, and After-Tax Cash Flow
Continued discussion
on inflation will focus on understanding how this important parameter
may impact the type of dollars and the appropriate discount rate
in escalated and constant dollar calculations. Sensitivity analyses
addressing uncertainty are explored along with an introduction
to quantifying risk through expected value calculations. Development
of after-tax cash flow will focus on related tax deductions including
costs that may be expensed, expenditures that are capitalized
and deducted by methods such as depreciation, depletion, amortization
or write-off's and loss forward considerations. |
Wednesday:
Inflation, Risk, Sensitivity Analysis
Continued discussion
on inflation will focus on understanding how this important parameter
may impact the type of dollars and the appropriate discount rate
in escalated and constant dollar calculations. Sensitivity analyses
addressing uncertainty are explored along with an introduction
to quantifying risk through expected value calculations.
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Thursday:
Application of Criteria in an After-tax Environment
The details of
calculating after-tax rate of return, net present value and ratios
are presented for a variety of investment scenarios. Other topics
include the impact of an investor's financial position on economics
and the handling of working capital. The conversion of before-tax
operating cost savings into after-tax cash flow and the proper
handling of sunk costs and opportunity costs will also be explored.
Understanding the meaning of after-tax NPV in estimating before-tax
market value of properties is also addressed. |
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Friday: Related
Issues in an After-tax Environment
Recognition of
the important differences in financial shareholder reporting vs.
tax reporting for publicly traded companies. After-tax cost analysis
of service applications will focus on different methods of evaluating
replacement and leasing vs. purchasing equipment and related issues.
Finally, the course is concluded with discussion pertaining to
evaluations involving borrowed money. |
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Textbook
The textbook Economic Evaluation and Investment Decision Methods,
11th Edition, May 2006 by F.J. Stermole and J.M. Stermole, and the accompanying
Solutions Manual and Self-Teaching Manual are published
and copyrighted by Investment Evaluations Corporation (IEC). The three
textbook set is included in the registration fee.
The Office of Special Programs and Continuing Education
at CSM will mail the Self-Teaching Manual to each participant prior
to the course for pre-course reading. The textbook and the Solutions
Manual will be handed out in class on Monday morning. However, all of
these textbooks may also be purchased separately.
To obtain additional copies of the textbooks, contact
the CSM Bookstore at 303/273-3113 or visit their web page at: http://mines.bkstore.com/bkstore/content.
The textbook sells for $95.00, the Problem Solutions
Manual for $30.00, and the Self-Teaching Manual for $25.00.
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