Course Details
Investment Construction
Academic Year 2023/24
NVB056 course is part of 1 study plan
NPC-SIE Winter Semester 2nd year
Creation of a business plan for a private and public sector investment project. Mapping and evaluating returns and costs, revenues and expenditures in various stages of the construction project life cycle. Modelling and working with risk and uncertainty in investment decision making. Use of postaudits to refine the forecast of project development in preinvestment phase.
Course Guarantor
Institute
Syllabus
1. Life cycle of a building project, phase, activities, documents
2. Feasibility study of private investment projects (case study of the development project)
3. Feasibility study of public investment projects (case study of transport infrastructure project)
4. Financing of investment projects incl. program financing ISPROFIN - EDS / SMVS
5. Methods of evaluating the economic efficiency of construction projects, the determination of discount rate
6. Risk analysis in investment decision making, concept and risk classification
7. Sensitivity analysis, qualitative and quantitative risk analysis in investment decision making
8. Risk management process, identification, analysis and recommendation for its reduction / elimination
9. Investment project portfolio management, process models
10.Postaudit of projects, retrospective analysis and evaluation
2. Feasibility study of private investment projects (case study of the development project)
3. Feasibility study of public investment projects (case study of transport infrastructure project)
4. Financing of investment projects incl. program financing ISPROFIN - EDS / SMVS
5. Methods of evaluating the economic efficiency of construction projects, the determination of discount rate
6. Risk analysis in investment decision making, concept and risk classification
7. Sensitivity analysis, qualitative and quantitative risk analysis in investment decision making
8. Risk management process, identification, analysis and recommendation for its reduction / elimination
9. Investment project portfolio management, process models
10.Postaudit of projects, retrospective analysis and evaluation
Prerequisites
Feasibility study, economic efficiency indicators (NPV, IRR, B / C, LCC), basics of sensitivity analysis, qualitative and quantitative risk analysis.
Language of instruction
Czech
Credits
5 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. Life cycle of a building project, phase, activities, documents
2. Feasibility study of private investment projects (case study of the development project)
3. Feasibility study of public investment projects (case study of transport infrastructure project)
4. Financing of investment projects incl. program financing ISPROFIN - EDS / SMVS
5. Methods of evaluating the economic efficiency of construction projects, the determination of discount rate
6. Risk analysis in investment decision making, concept and risk classification
7. Sensitivity analysis, qualitative and quantitative risk analysis in investment decision making
8. Risk management process, identification, analysis and recommendation for its reduction / elimination
9. Investment project portfolio management, process models
10.Postaudit of projects, retrospective analysis and evaluation
Exercise
13 weeks, 1 hours/week, compulsory
Syllabus
1. Basic terms, relationships and calculations in the field of economy of investment.
2. Developer project, assignment, work with input variables.
3. Developer project, creation of economic model, net cash flow (NCF), determination of WACC discount rate.
4. Developer project, calculations of economic efficiency indicators, basic evaluation.
5. Public project according to individual assignment (transport infrastructure, public building), setting of input variables.
6.-7. Public project, creation of financial and economic cash flows, calculations of economic efficiency indicators.
8. Sensitivity analysis of project indicators to change of input quantities.
9. Risk taking into account in the calculation of economic efficiency indicators, quantitative and qualitative analysis.
10. Final test, credit.