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

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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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, HP17BII or Texas Instruments BAII or equivalent models are suitable substitutes.  HP^® calculators are available on line at:  www.hpshopping.com.  Laptops with Excel^® are an alternative to calculators and are welcome. Application of both will be addressed during the courses.

HP is a registered trademark of Hewlett-Packard Company. Excel is a registered trademark of Microsoft Corporation.

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The fee schedule for 2010 courses is as follows: 5-day course: $2,295; 3-day course: $1,595. 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. The Colorado School of Mines will award 3.3 Continuing Education Units (CEU's) for the 5-day course and 1.9 CEU's for the 3-day course upon successful completion of the program.

Registrants are responsible for their own lodging, food, and travel arrangements. Click here for accommodations information and for travel information.

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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.

5-Day Course	3-Day Course
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.
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.
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.
Thursday: After-Tax Applications 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.
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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The textbook Economic Evaluation and Investment Decision Methods, 12th Edition, 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 $95.95, the Problem Solutions Manual for $35.00, and the Self-Teaching Manual for $25.00.