Course Details

Economy of Investments

Academic Year 2023/24

CV058 course is part of 1 study plan

N-P-C-SI (N) / M Winter Semester 2nd 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. 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

Prerequisites

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

Language of instruction

Czech

Credits

4 credits

Semester

winter

Forms and criteria of assessment

course-unit credit

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, 1 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. 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 weeks, 1 hours/week, compulsory

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