Course detail

Economy of Investments

FAST-CV058Acad. year: 2018/2019

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

4

Mode of study

Not applicable.

Department

Institute of Structural Economics and Management (EKR)

Learning outcomes of the course unit

The knowledge and skills regarding to describe and analysis variables as inputs into calculation of economic efficiency. The knowledge of economic efficiency investment ratio (net present value, internal rate of return, payback period), profit, sensitivity and probability analysis. Creation of models for calculation of economic and financial feasibility of investment projects.

Prerequisites

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

Co-requisites

Creation of financial statements (Income Statement, Balance Sheet, Statement of CF), the revenues - costs, revenue - expenses.

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.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. Total project costs, investment costs, working capital
4.Financing of structural investment projects, resources and costs
5.Returns and production costs, profit, cash flow (CF). Income statement, balance sheet, CF statement
6.Economic analysis, economic efficiency of investment ratios (NPV, IRR, PB)
7.Financial analysis, financial feasibility of project ratios
8.Analysis of uncertainty according to project financial evaluation, resources and reason of uncertainty, inflation
9.-10. Risk and uncertainty analysis; profit, sensitivity and probability analysis

Work placements

Not applicable.

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.

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-P-C-SI (N) Master's

    branch M , 2. year of study, winter semester, compulsory-optional

  • Programme N-P-E-SI (N) Master's

    branch M , 2. year of study, winter semester, compulsory-optional

  • Programme N-K-C-SI (N) Master's

    branch M , 2. year of study, winter semester, compulsory-optional

Type of course unit

 

Lecture

13 hours, 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. Total project costs, investment costs, working capital
4.Financing of structural investment projects, resources and costs
5.Returns and production costs, profit, cash flow (CF). Income statement, balance sheet, CF statement
6.Economic analysis, economic efficiency of investment ratios (NPV, IRR, PB)
7.Financial analysis, financial feasibility of project ratios
8.Analysis of uncertainty according to project financial evaluation, resources and reason of uncertainty, inflation
9.-10. Risk and uncertainty analysis; profit, sensitivity and probability analysis

Exercise

13 hours, compulsory

Teacher / Lecturer

Syllabus

1.Basic ratios for evaluation of the economic efficiency of investment
2.Calculation of depriciation
3.Analysis of uncertainties - profitability, sensitivity and probability analysis
4.Assignment of project - production of wooden windows
5.Continuation of project - resources of business plan financing
6.Continuation of project - profit and loss statement, cash flow statement
7.Optimization of financial resources - credit, leasing, bonds
8.Continuation of optimization of financial resources
9.Credit test
10.Credit