Investment Projects Assessment 2600-DSFRdz/w3fpOPI
1. The Essence of Investments. Investment Decisions in Financial Management. Long-term, Strategic Consequences of Undertaken Investments. Investment Implementation Formulas. Project Finance, Corporate Finance.
2. Time Value of Money Analysis under Risk Conditions (Monte Carlo Analysis). Fixed and Increasing Annuity Payments. Perpetuities. Continuous Compounding.
3. Simple Methods of Investment Efficiency Assessment – Advantages and Disadvantages. Investment Evaluation vs. Whole Enterprise Evaluation. Bank Methods of Investment Assessment.
4. Criteria for Choosing Long-term Sources of Financing for Enterprises and Investment Projects.
5. Cost of Capital Valuation. Components of Capital Cost. Debt. Common Equity. Cost Calculations Using Statistical Analysis. Outcome Evaluation. Sector-Specific Capital Costs. Weighted Average Cost of Capital. Identification of Significant (Interest-bearing) Capitals. Analysis of Capital Structure in the Valuation of Capital Costs.
6. Valuation of Incremental Cash Flows. Cash Flows for Different Stakeholder Groups: Owners, Lenders, All Capital Suppliers.
7. Project Evaluation Criteria: NPV (Net Present Value), APV (Adjusted Present Value), IRR (Internal Rate of Return), Modified Internal Rate of Return (MIRR), Discounted Payback Period (DPP). Accounting Rate of Return (ARR).
8. Multiple Internal Rates of Return (MIRR). Unusual Distributions of Investment Cash Flows.
9. Project Analysis for Different Operating Periods. Abandonment of Investment Projects. Modification of Cash Flows.
10. Assessment of Investment Decisions Made Under Risk Conditions. Certainty Equivalent. Decision Trees. Scenario Analysis. Simulation Analysis (Monte Carlo Analysis). Investment Project Risk Assessment.
11. Identification of Option Situations in Investment Projects. Strategic Project Analysis. Flexibility Evaluation.
Type of course
Mode
Course coordinators
Learning outcomes
After completing the course, the student:
In the scope of knowledge:
• Possesses a deep understanding of the terminology related to financial management in enterprises within the discipline of economics and finance, and in complementary disciplines (management and quality sciences, legal studies); (S3_W01).
• Has an advanced knowledge and understanding of the principles, procedures, and practices related to financial management in enterprises (S3_W02).
• Is familiar with and understands in-depth the economic theories and models pertaining to financial management in enterprises (S3_W03).
• Knows and comprehends the technological, social, political, legal, economic, and ecological processes and phenomena and their impact on financial management in enterprises (S3_W05).
In terms of skills:
• Can apply theories from the discipline of economics and finance and complementary disciplines (management and quality sciences, legal studies) to identify, diagnose, and solve problems related to financial management in enterprises, using appropriate sources and adapting existing methods (S3_U01).
• Is capable of accurately interpreting technological, social, political, legal, economic, and ecological processes and their impact on financial management in enterprises, using the appropriate selection of sources (S3_U02).
• Can independently and collaboratively prepare analyses, diagnoses, and reports concerning financial management in enterprises, and present them effectively, including in English, utilizing information and communication tools (S3_U03).
• Has the ability to plan and organize personal and team work (S3_U04).
• Possesses the ability to engage in self-education and enhance acquired qualifications (S3_U05).
In terms of attitudes
• Is ready to evaluate and critically approach situations and phenomena related to financial management in enterprises (S3_K01).
• Is prepared to adhere to professional ethical standards in financial management within enterprises (S3_K02).
Assessment criteria
• Homework – Excel models - 20%, i.e., 20 points.
• Written final exam (with required attachment of calculations for numerical answers) – in a stationary form - 80%, i.e., 80 points.
Bibliography
Basic literature:
• Cieślik R., Postuła M. (red.) Projekty inwestycyjne. Finansowanie, budżetowanie, ocena efektywności, Difin, Warszawa 2016
Supplementary literature:
• Rogowski W. Rachunek efektywności inwestycji, Wolters Kluwer, 2013
• Rutkowski A. Zarządzanie finansami (wyd. 4 zm.), PWE, Warszawa 2016
• Selected articles from „Journal of Applied Corporate Finance”, “McKinsey on Finance”.
Additional information
Additional information (registration calendar, class conductors, localization and schedules of classes), might be available in the USOSweb system: