Course Details
Economy of Investments
Academic Year 2023/24
NVB033 course is part of 1 study plan
NPC-SIM 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 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.
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.
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 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.
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.