Course detail

Investment Construction

FAST-NVB056Acad. year: 2022/2023

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.



Language of instruction

Czech

Number of ECTS credits

5

Mode of study

Not applicable.

Guarantor

prof. Ing. Jana Korytárová, Ph.D.

Department

Institute of Structural Economics and Management (EKR)

Learning outcomes of the course unit

Not applicable.

Prerequisites

Feasibility study, economic efficiency indicators (NPV, IRR, B / C, LCC), basics of sensitivity analysis, qualitative and quantitative risk analysis.

Co-requisites

Not applicable.

Planned learning activities and teaching methods

Not applicable.

Assesment methods and criteria linked to learning outcomes

Not applicable.

Course curriculum

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

Work placements

Not applicable.

Aims

Not applicable.

Specification of controlled education, way of implementation and compensation for absences

Extent and forms are specified by guarantor’s regulation updated for every academic year.

Recommended optional programme components

Not applicable.

Prerequisites and corequisites

Not applicable.

Basic literature

BAUM, Andrew. Real Estate Investment. A Strategic Approarch. Routledge, New York, 2022. ISBN 9780367690694.   (EN)
DUFEK, Zdeněk, KORYTÁROVÁ, Jana, APELTAUER, Tomáš, HROMÁDKA, Vít, FIALA, Petr, DROCHYTKA, Rostislav, BYDŽOVSKÝ, Jiří, VANĚREK, Jan, AIGEL, Petr, VÝSKALA, Miloslav a Martin NOVÝ. Veřejné stavební investice. Praha: Leges, 2018. ISBN: 978-80-7502-322-3. (CS)
FURFINE, Craig. Practical Finance for Property Investment. Routledge, New York, 2020. ISBN 9780367333041. (EN)
KORYTÁROVÁ, Jana a Vít Hromádka. Investiční výstavba (el. studijní opora FAST VUT), 2022. (CS)

Recommended reading

Not applicable.

Classification of course in study plans

  • Programme NPC-SIE Master's 2 year of study, winter semester, compulsory

Type of course unit

 

Lecture

26 hod., optionally

Teacher / Lecturer

prof. Ing. Jana Korytárová, Ph.D.

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 hod., compulsory

Teacher / Lecturer

doc. Ing. Vít Hromádka, Ph.D.

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.