Course Details
Economy of Investment
Academic Year 2023/24
BV005 course is part of 1 study plan
B-P-C-SI (N) / N Winter Semester 4th year
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.
Course Guarantor
Institute
Objective
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.
Knowledge
Creation of models for calculation of economic and financial feasibility of investment projects. Feasibility study.
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
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
Prerequisites
Knowledge of financial and taxation issues and orientation in construction cost estimates.
Language of instruction
Czech
Credits
6 credits
Semester
winter
Forms and criteria of assessment
course-unit credit and examination
Specification of controlled instruction, the form of instruction, and the form of compensation of the absences
Extent and forms are specified by guarantor’s regulation updated for every academic year.
Offered to foreign students
Not to offer
Course on BUT site
Lecture
13 weeks, 2 hours/week, elective
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
13 weeks, 2 hours/week, compulsory
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