Assessment of company development projects 2600-MSFRdz2zfpOPRP
1. Areas of enterprise financial management in the long-term. Long-term goals and criteria for company evaluation.
2. Equity as a long-term source of enterprise financing. Decisions to go public (IPO).
3. Bonds as a long-term source of enterprise financing. Financial risk analysis.
4. Hybrid sources of long-term financing. Leasing.
5. The use of short-term securities in long-term financing of the enterprise. Risk analysis.
6. Cost of capital valuation. Components of the cost of capital. Debt. Ordinary equity. CAPM, APT models. Cost calculations using regression analysis. Hamada model. Weighted average cost of capital. Capital structure optimization. Assumptions for using models.
7. Assessment of investment projects. Valuation of incremental cash flows. Non-normal distributions of investment cash flows.
8. Project evaluation criteria: NPV, APV, IRR, multiple internal rate of return, MIRR, DPP. Assessment of projects with unequal economic lives.
9. Optimization of the scale and scope of the investment program. Capital rationing.
10. Inflation and capital investment analysis.
11. Assessment of investment decisions made under risk conditions. Equivalent annual annuity. Decision trees. Scenario analysis. Simulation analysis (Monte Carlo analysis).
12. The use of real options in the assessment of development projects. Classifications of real options. Development options and strategies.
13. Assessment of foreign investments. Risk analysis.
14. Assessment of non-profit investments. Investments with outflows. Assessment of infrastructure investments. Social discount rate.
Type of course
Mode
Learning outcomes
After completing the course, the student:
In the scope of knowledge:
• Knows and deeply understands the terminology related to the financial management of a company within the discipline of management science and quality, as well as in complementary disciplines (economics and finance, legal studies). (S3_W01)
• Knows and deeply understands the principles, procedures, and practices related to the financial management of a company. (S3_W02)
• Knows and deeply understands the economic theories and models related to the financial management of a company. (S3_W03)
• Knows and deeply understands the complex technological, social, political, legal, economic, and ecological processes and phenomena, and their impact on the financial management of a company. (S3_W05).
In terms of skills:
• Is able to apply the theory of management science and quality, as well as complementary sciences (economics and finance, legal studies), to recognize, diagnose, and solve problems related to the financial management of a company, using the appropriate selection of sources and adapting or developing new methods. (S3_U01).
• Is able to correctly interpret complex technological, social, political, legal, economic, and ecological processes and phenomena and their impact on the financial management of a company, using the appropriate selection of sources. (S3_U02)
• Is able to independently and collaboratively prepare analyses, diagnoses, and reports on complex and unusual problems related to the financial management of a company, and effectively present them, including in English, using information and communication tools. (S3_U03)
• Is able to plan, organize, and lead teamwork. (S3_U04)
• Has the ability to self-educate, improve acquired qualifications, and support others in this respect. (S3_U05)
In terms of attitudes:
• Is ready to evaluate and critically approach complex situations and phenomena related to the financial management of a company. (S3_K01)
• Is ready to adhere to and develop professional ethical standards in financial management of a company. (S3_K02)
Assessment criteria
• Homeworks - Excel models - 20%
• Group semester project - feasibility study of the designed project -80%
Bibliography
Basic literature:
• Cieślik R., Postuła M. (eds.) Projekty inwestycyjne. Finansowanie, budżetowanie, ocena efektywności, Difin, Warszawa 2016.
Supplementary literature:
• Behrens W., Hawranek P.M., Poradnik przygotowania przemysłowych studiów feasibility, Wydanie poprawione i rozszerzone, UNIDO, Warszawa 1993.
• BodmerE. Corporate and Project Finance Modeling. Theory and Practice. Wiley, Hoboken 2015.
• Rogowski W. Rachunek efektywności inwestycji, Wolters Kluwer, 2013.
• Jajuga K., Jajuga T. Inwestycje. Instrumenty finansowe, aktywa niefinansowe, ryzyko finansowe, inżynieria finansowa, Wydawnictwo Naukowe PWN, Warszawa 2015.
Additional literature (ethics, scientific articles, social context, ...)
• Sandel M. Czego nie można kupić za pieniądze, Kurhaus Publishing, 2013.
• Selected articles from: „Journal of Applied Corporate Finance”, “McKinsey on Finance”, “CFO Journal” (WSJ - Deloitte), Boston Consulting Group Reports.
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: