Course detail

Investments

FAST-CV005Acad. year: 2018/2019

Technical economic studies. Financial analysis and method for evaluation of project economical efficiency. Risk management, risk classification and identification, assessment of relevance of risk factors. Firm investment programme and financial plan.

Language of instruction

Czech

Number of ECTS credits

4

Mode of study

Not applicable.

Department

Institute of Structural Economics and Management (EKR)

Learning outcomes of the course unit

Extend of knowledge of processing of technical economic studies about risk management and elaboration of firm investment programme. Caculation of Weighted Average Cost of Capital (WACC) for establish of discount rate. Assesment of foreign and equity capital.

Prerequisites

Feasibility study, knowledge of economic efficiency investment ratio (net present value, internal rate of return, pay back period), profit, sensitivity and probalility analysis.

Co-requisites

Division of costs for the unit price calculation, for accounting, finance and investment (for needs for statement of the profit and loss), in terms of quantity production (fixed and variable).

Planned learning activities and teaching methods

The course is taught through lectures, practical classes and self-study assignments. Attendance at lectures is optional, but attendance at classes is compulsory.

Assesment methods and criteria linked to learning outcomes

Credit is awarded on the processing of the final test containing of solution of examples. The exam consists of a written test, written answers to questions and oral examination. For passing the oral exam, the student must obtain in the written part a minimum 50 points from 100.

Course curriculum

1-2. Feasibility study – importance and main chapters
3-4. Methods for evaluation of the project economic efficiency and financial feasibility
5-6. Investment project risk assessment
7-8. Investment project risk evaluation
9-10. Firm investment programme and financial plan
11-13. Optimalization of firm investment programme

Work placements

Not applicable.

Aims

Goal of this subject is to extend of knowledge of processing of technical economic studies about risk management and elaboration of firm investment programme.

Specification of controlled education, way of implementation and compensation for absences

Extent and forms are specified by guarantor’s regulation updated for every academic year.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

Not applicable.

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme N-K-C-SI (N) Master's

    branch N , 1. year of study, summer semester, compulsory

  • Programme N-P-C-SI (N) Master's

    branch N , 1. year of study, summer semester, compulsory

Type of course unit

 

Lecture

13 hours, optionally

Teacher / Lecturer

Syllabus

1-2. Feasibility study – importance and main chapters
3-4. Methods for evaluation of the project economic efficiency and financial feasibility
5-6. Investment project risk assessment
7-8. Investment project risk evaluation
9-10. Firm investment programme and financial plan
11-13. Optimalization of firm investment programme

Exercise

26 hours, compulsory

Teacher / Lecturer

Syllabus

1.-2. Basic terms, approaches, relationships and calculations in the area of economy of investment (business plan, feasibility study, present value and evaluation of economic efficiency, inflation, risk, etc.)
3.Project of administrative building implementation and operation
4.Project of administrative building implementation and operation
5.Firm costs of capital, discount rate assessment, evaluation of own investment to the project
6.Risk of investment project, assessment of significant risk factors
7.Break-even point and operating leverage, break-even point in terms of net present value
8.Sensitivity analysis of project indicators to change the input variables
9.Consideration of risk in calculating indicators of economic efficiency - probability trees
10.Optimalization of firm investment programme
11.Respecting the flexibility of investment projects - real options
12.Credit test
13.Credit