Course detail
Economy of Investments
FAST-CV58Acad. year: 2014/2015
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.
Language of instruction
Number of ECTS credits
Mode of study
Guarantor
Department
Learning outcomes of the course unit
Prerequisites
Co-requisites
Planned learning activities and teaching methods
Assesment methods and criteria linked to learning outcomes
Course curriculum
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. Risk and uncertainty analysis; profit, sensitivity and probability analysis
10. Decision rules based on matrix production. Introduce to portfolio management
Work placements
Aims
Specification of controlled education, way of implementation and compensation for absences
Recommended optional programme components
Prerequisites and corequisites
Basic literature
KORYTÁROVÁ, Jana, FRIDRICH Jaroslav a PUCHÝŘ Bohumil: Ekonomika investic. Brno: Akademické nakladatelství CERM, s.r.o., 2002. ISBN 80-214-2089-8. (CS)
LUMBY, Steve: Investment Appraisal and Financial Decisions. London: Chapman &Hall, 1999. ISBN-13: 978-1861522573. (EN)
Recommended reading
Classification of course in study plans
Type of course unit
Lecture
Teacher / Lecturer
Syllabus
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. Risk and uncertainty analysis; profit, sensitivity and probability analysis
10. Decision rules based on matrix production. Introduce to portfolio management
Exercise
Teacher / Lecturer
Syllabus
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