Investment Project E ...

Course type: Elective
Hours in total: 26 (Lectures and seminars) 2 hours x 12 weeks or equivalent.
Number of credits: (ECTS equivalents): 3
Assessment and completion of the course: Graded credit test

Continuous assessment
The student will write 2 quizzes (each for 30 points) for the max during the semester. 60 percentage points.
Final assessment 
At the end of the semester, the student passes the written final examination by 40 percentage points. 
Student passes the final assessment and examination when they meet the requirement to obtain at least 51% out of 100%.

Learning outcomes
The subject builds on the methods, reasoning and skills acquired during the bachelor's studies in the field of finance, banking and investing, especially in accounting, statistics and informatics (working with financial mathematics, using functions in MS Excel, etc.). To thoroughly master the principles of capital budgeting, it is necessary to combine work in MS Excel, as well as with specialised statistical software (add-ons) for MS Excel (or other software). After completing the course, the student should:
- be able to process the financial plan of capital investment in the company as well as process its evaluation with possible recommendations,
- be able to create and apply a suitable investment evaluation tool, to understand its advantages and disadvantages,
- understand the attributes of the project implementation environment, related to, for example, taxation, changes in the price level, creation of the level of required profitability or risks applied,
- understand modifications of the designed tool using analytical approaches to take uncertainty conditions into account,
- master the MS Excel environment and its add-ons for processing individual calculations and analyses in capital planning and investment project decision making.
In the subject, students acquire financial reasoning, learn to process and model financial data and make estimates of the development of certain projects and cash flows. The acquired knowledge and skills are necessary for the analysis and processing of data within the company and the preparation of its investment projects, especially in the field of financial management.

Brief course content
1. Capital structure, CapEx vs OpEx , Gross vs Net investments.
2: Financial statements, understanding EBITDA and Cash Flows.
3. Basics of Capital budgeting.
4. Net present value, PV Annuity factor, Adjusted NPV, Inflation impact, basics of Financial Mathematics behind.
5. The Internal Rate of Return (IRR), MIRR, flaws & limitations, context.
6. Profitability index, Payback period & Average return (vs ROI).
7. Cost criteria
8. Calculation of complex excercise using all previously learned methods.
9. The cost of capital and calculation of the average cost of capital or WACC

Recommended References
1. Brealey, R., Myers, S., Allen, F. (2013). Principles of Corporate Finance. New York: McGraw-Hill/Irwin. ISBN 978-0078034763.
2, De Man, H. (2012). Deliverable D3.3 – Value Delivery Model and Methods. NEFFICS FP7 Project. Avaliable at: http://neffics.eu/public-deliverables/ ;
3. Gordijn, J. (2002). Value-based Requirements Engineering, Exploring Innovative e-Commerce Ideas. Dissertation Series No. 2002-8, p. 311.
4. Martin, K., Osterling, M. (2013). Value Stream Mapping: How to Visualize Work and Align Leadership for Organizational Transformation. New York, New York: McGraw Hill. ISBN 9780071828918.
5. Damodaran, A. (2011): Little Book of Valuation: How to Value a Company, Pick a Stock and Profit, Hoboken, N.J., Wiley, 256 s., ISBN: 978-1-118-00477-7.