Investment Projects Evaluation 131431-D
Wykład (WYK) Semestr zimowy 2024/25

Investment, concept, basic types, characteristics of investment specificity, elements of effectiveness evaluation.

Investment project, concept, types and elements.

Pre-investment study, characteristics and significance, life cycle of a project.

Feasibility study - aims, functions, elements of construction.

Forming the structure of sources of project financing (capital budgeting).

Estimation of cash flows for subjects participating in the project - basic errors of financial projections.

Project finance - concept, participating subjects, specificity of approach in effectiveness evaluation.

Project finance - characteristics of major types of risk and instruments of its reduction.

Statistical methods of project evaluation - period of return, simple rate of return, first year test - advantages and disadvantages.

Profitability threshold and financial liquidity threshold, project sensitivity analysis.

Discount methods - basic characteristics, problem of choosing and estimating the discount rate.

NPV, NPVR - assumptions, calculation formulas, methods of interpretation.

IRR - assumptions, calculation formulas, methods of interpretation; results of NPV vs. IRR

Modified methods of profitability (MNPV, MIRR, MPI).

Evaluation of non-profit projects.

Case studies - problems of evaluating investment projects examples.