Course detail
Economy of Investment
FAST-BV005Acad. year: 2023/2024
Investment and national economy. Investment area (return, risk and liquidity). Time value of money. Feasibility study. Evaluation of economic efficiency and financial feasibility of structural investment projects. Procedures and methods for future development simulation of project. Economic efficiency ratios. Risk and uncertainty.
Language of instruction
Czech
Number of ECTS credits
6
Mode of study
Not applicable.
Guarantor
Department
Institute of Structural Economics and Management (EKR)
Entry knowledge
Knowledge of financial and taxation issues and orientation in construction cost estimates.
Rules for evaluation and completion of the course
Extent and forms are specified by guarantor’s regulation updated for every academic year.
Aims
Goal of this subject are knowledge and skills regarding to describe and analysis variables as inputs into calculation of economic efficiency. Creation of models for calculation of economic and financial feasibility of investment projects.
Creation of models for calculation of economic and financial feasibility of investment projects. Feasibility study.
Creation of models for calculation of economic and financial feasibility of investment projects. Feasibility study.
Study aids
Not applicable.
Prerequisites and corequisites
Not applicable.
Basic literature
BAUM, Andrew. Real Estate Investment. A Strategic Approarch. Routledge, New York, 2022. ISBN 9780367690694. (EN)
FOTR, Jiří a Ivan SOUČEK. Investiční rozhodování a řízení projektů, Praha: Grada Publishing, a.s., 2011 (CS)
FURFINE, Craig. Practical Finance for Property Investment. Routledge, New York, 2020. ISBN 9780367333041. (EN)
KORYTÁROVÁ, Jana. Ekonomika investic (el. stud. opora FAST VUT), 2020 (CS)
FOTR, Jiří a Ivan SOUČEK. Investiční rozhodování a řízení projektů, Praha: Grada Publishing, a.s., 2011 (CS)
FURFINE, Craig. Practical Finance for Property Investment. Routledge, New York, 2020. ISBN 9780367333041. (EN)
KORYTÁROVÁ, Jana. Ekonomika investic (el. stud. opora FAST VUT), 2020 (CS)
Recommended reading
Not applicable.
Classification of course in study plans
Type of course unit
Lecture
26 hod., optionally
Teacher / Lecturer
Syllabus
1.Investment and economy growth, sorts of investment possibilities
2.Theoretical appraisal for evaluation of economic efficiency of investment, time value of money
3.Feasibility study
4.Total project costs, investment costs, working capital
5.Financing of structural investment projects, resources and costs
6.Returns and production costs, profit, cash flow (CF)
7.Income statement, balance sheet, CF statement
8.Economic analysis, economic efficiency of investment ratios (NPV, IRR, PB)
9.Financial analysis, financial feasibility of project ratios
10.Analysis of uncertainty according to project financial evaluation, resources and reason of uncertainty, inflation
11.Risk and uncertainty analysis; profit, sensitivity and probability analysis
12.Decision rules based on matrix production
13.Introduce to portfolio management
Exercise
26 hod., compulsory
Teacher / Lecturer
Syllabus
1.Basic ratios for evaluation of the economic efficiency of investment
2.Returns and inflation, the internal rate of return calculation, calculation example of bonds
3.The calculation of the real net present value
4.Continuing with calculation example of bonds
5.Portfolio - returns, risk, correlation coefficient
6.Analysis of uncertainties - profitability, sensitivity and probability analysis
7.Assignment of project - production of wooden windows
8.Continuation of project - resources of business plan financing
9.Continuation of project - profit and loss statement, cash flow statement
10.Optimization of financial resources - credit, leasing, bonds
11.Continuation of optimization of financial resources
12.Credit test
13.Credit