Course detail

Economy of Investments

FAST-NVB033Acad. year: 2020/2021

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.

Department

Institute of Structural Economics and Management (EKR)

Learning outcomes of the course unit

Creation of models for calculation of economic and financial feasibility of investment projects. Feasibility study.

Prerequisites

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

Co-requisites

Not applicable.

Recommended optional programme components

Not applicable.

Recommended or required reading

Not applicable.

Planned learning activities and teaching methods

Not applicable.

Assesment methods and criteria linked to learning outcomes

Not applicable.

Language of instruction

Czech

Work placements

Not applicable.

Course curriculum

1. Investment and economic growth, types of investment opportunities.
2. Theoretical assumptions for assessing the economic efficiency of investments, time value of money.
3. Technical and Economic Study of the Investment Project - feasibility study.
4. Specification of revenues and costs in each life cycle of a construction project.
5. Financing of construction investment projects, resources and costs.
6-7. Creation of documents for economic evaluation of investment projects, determination of cash flows
8.-9. Economic analysis of investment projects - calculations of NPV, IRR, LCC and their interpretation.
10. Analysis of profitability, critical cost point, sensitivity and probability analysis.

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.

Classification of course in study plans

  • Programme NPC-SIM Master's, 2. year of study, winter semester, 4 credits, compulsory-optional

Type of course unit

 

Lecture

13 hours, optionally

Teacher / Lecturer

Exercise

13 hours, compulsory

Teacher / Lecturer