Course detail

Financing and Economy of Investment

FAST-V45Acad. year: 2021/2022

This course covers an area of managerial economics: the theory of financial decision making by business company.The content includes balance sheet (assets and liabilities), income statement (sales and expenses), financial relationship between companies and bussines partners - banks, institutions and national budget. Feasibility study. Basic methods of investment effectiveness evaluation. Portfolio theory. Financial decision-making is the process whereby resources are allocatedin organizations in anticipation of future gain. These decisions must rank as one of the most critical types of decision made in modern industrial society. Students understand the process by which such decisions are made and the means by which this process can be made.

Language of instruction

Czech

Number of ECTS credits

5

Department

Institute of Structural Economics and Management (EKR)

Learning outcomes of the course unit

Not applicable.

Prerequisites

Knowledge of financial and taxation issues and orientation in construction cost estimates.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

Not applicable.

Assesment methods and criteria linked to learning outcomes

Not applicable.

Course curriculum

1.-2. Theoretical aspects of investmens
3.–4. Principle, cycle and phases of investment intention.
5.–6. Feasibility study – importance and main chapters.
7.–8. Total costs of the project (investment costs, working capital).
9.–10. Financing of investment projects (internal and external sources).
11.–12. Firm’s capacity, inputs into the production. Revenues and production costs.
13. Criteria for evaluation of the economic efficiency of the project.

Work placements

Not applicable.

Aims

Goal of this subject is to give sufficient information for independent processing of business plan including financing variants.

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

Adams A.: Investment. Kluwer Law International, London, 1995
Brealey R.A.: Teorie a praxe firemních financí. Victoria Publishing 1992
Fotr J.: Podnikatelský plán a invstiční rozhodování. Grada Publishing 1992
Shall L.D.,Haley Ch.: Inroduction to financial management. McGraw-Hill Book Co. - Singapore 1986
Valach J.: Investiční rozhodování a dlouhodobé financování. VŠE, Praha 1994

Recommended reading

Not applicable.

Type of course unit

 

Lecture

39 hours, optionally

Teacher / Lecturer

Syllabus

1.-2. Theoretical aspects of investmens 3.–4. Principle, cycle and phases of investment intention. 5.–6. Feasibility study – importance and main chapters. 7.–8. Total costs of the project (investment costs, working capital). 9.–10. Financing of investment projects (internal and external sources). 11.–12. Firm’s capacity, inputs into the production. Revenues and production costs. 13. Criteria for evaluation of the economic efficiency of the project.

Exercise

26 hours, compulsory

Teacher / Lecturer