Course detail
Economy of Investments
FAST-NVB033Acad. year: 2023/2024
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
Czech
Number of ECTS credits
4
Mode of study
Not applicable.
Guarantor
Department
Institute of Structural Economics and Management (EKR)
Entry knowledge
Knowledge of financial and taxation issues and orientation in construction cost estimates.
Rules for evaluation and completion of the course
Extent and forms are specified by guarantor’s regulation updated for every academic year.
Aims
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.
Creation of models for calculation of economic and financial feasibility of investment projects. Feasibility study.
Creation of models for calculation of economic and financial feasibility of investment projects. Feasibility study.
Study aids
Not applicable.
Prerequisites and corequisites
Not applicable.
Basic literature
BAUM, Andrew. Real Estate Investment. A Strategic Approarch. Routledge, New York, 2022. ISBN 9780367690694. (EN)
FOTR, Jiří a Ivan SOUČEK. Investiční rozhodování a řízení projektů, Praha: Grada Publishing, a.s., 2011. (CS)
FURFINE, Craig. Practical Finance for Property Investment. Routledge, New York, 2020. ISBN 9780367333041. (EN)
KORYTÁROVÁ, Jana. Ekonomika investic (el. stud. opora FAST VUT), 2020. (CS)
FOTR, Jiří a Ivan SOUČEK. Investiční rozhodování a řízení projektů, Praha: Grada Publishing, a.s., 2011. (CS)
FURFINE, Craig. Practical Finance for Property Investment. Routledge, New York, 2020. ISBN 9780367333041. (EN)
KORYTÁROVÁ, Jana. Ekonomika investic (el. stud. opora FAST VUT), 2020. (CS)
Recommended reading
Not applicable.
Classification of course in study plans
- Programme NPC-SIM Master's 2 year of study, winter semester, compulsory-optional
Type of course unit
Lecture
13 hod., optionally
Teacher / Lecturer
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 hod., compulsory
Teacher / Lecturer
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.