INVESTMENT APPRAISAL
- Course
- ACFN519 - INVESTMENT APPRAISAL
- Department
- Accounting and Finance - English - Master
- Course Type
- Course
- Status
- Required
- Language
- English
- Credit
- 3
- ECTS
- 0
- T+P+L
- 3 + 0 + 0
- Course Coordinator(s)
- -
- Prerequisite
- -
Course Description
This course is devoted to the techniques of cost-benefit analysis of investment projects. The course covers both the analytical techniques as well as their practical applications in decision-making. The course topics will cover financial modeling of investment projects, alternative investment criteria, the role of discounting the time value of money, pre-feasibility and feasibility studies in project appraisal, sensitivity analysis and maintaining consistency between real and nominal prices, inflation rates, exchange rates and interest rates. It will also cover how to determine the optimal scale and timing of investments and how to construct income statements and balance sheets from cash flow projections.
INVESTMENT APPRAISAL
Evaluation Tools (Active Term)
| Item | Type | Weight (%) |
|---|---|---|
| Final Exam | Final | 40 |
| Midterm Exam | Midterm | 30 |
| Quiz | Quiz | 10 |
| Assignment | Assignment | 10 |
| Project | Project | 10 |
| Total | 100 | |
Course outcomes
No course outcomes have been defined yet.
Course Syllabus
| Week | Topic |
|---|---|
| Week 1 | Role and Components of Investment Appraisal |
| Week 2 | Discounting and Alternative Investment Criteria Estimation |
| Week 3 | Components of Cash Flow Analysis |
| Week 4 | The Opportunity Cost of Existing Assets |
| Week 5 | Use of Consistent Prices, Exchange Rates and Interest Rates in Project Evaluation |
| Week 6 | Impacts of inflation on Investment Performance and Determination |
| Week 7 | Midterm |
| Week 8 | Optimal Scale, and Timing of Projects and Choice of Mutually Exclusive Projects with Different Lengths of Life |
| Week 9 | Debt service coverage ratio and Analysis of Projects from alternative points of view |
| Week 10 | Cost-Effectiveness Analysis |
| Week 11 | Sensitivity and Risk Analysis |
| Week 12 | Project Monitoring and Post Evaluation |
| Week 13 | Major Case |
| Week 14 | Final exam |
| Week 15 | - |
Reference Books & Course Materials
- 01 Glenn P. Jenkins, Chun – Yan Kuo, and Arnold C. Harberger, Cost-Benefit Analysis for Investment Decisions, First ed. Kindle Direct Publishing 2019.
- 02 Belli, P., et.al, Economic Analysis of Investment Operations: Analytical Tools and Practical Applications, WBI Development Studies, World Bank Institute, World Bank, 2001
Learning Outcomes
- L01 To construct a pre-feasibility study SOLO 4
- L02 To analyze investment projects to determine whether they should be implemented using modern investment decision-making criteria SOLO 4
- L03 To apply methods of financial modeling for investment projects SOLO 3
- L04 To integrate financial, economical, and stakeholder analysis SOLO 4
- L05 To compare alternative investment criteria SOLO 4
- L06 To assess implementation of public and private invesment projects SOLO 5
Program Outcomes
- Demonstrate advanced knowledge of core concepts and theoretical frameworks in Management Information Systems, and apply them to develop innovative models that reflect current advancements in the field.
- Analyze complex organizational problems and design integrated information systems solutions by applying advanced MIS knowledge and synthesizing multiple theoretical perspectives.
- Develop and manage database systems and data-driven applications that ensure effective storage, retrieval, and use of organizational data in real-world contexts.
- Utilize data analytics, business intelligence tools, and data visualization techniques to extract actionable insights and support strategic, data-driven decision-making.
- Evaluate and apply emerging technologies such as AI, IoT, and Blockchain to drive digital transformation, enhance organizational performance, and formulate original research inquiries.
- Conduct independent and collaborative research using appropriate methodologies, and communicate findings effectively through scholarly writing and presentations suited to diverse audiences.
- dentify and address ethical, legal, and societal implications in the research, development, and use of information technologies, adhering to scientific and professional standards.
- Collaborate effectively in multidisciplinary teams and demonstrate leadership in addressing complex technology-driven challenges.
- Apply project management methodologies and tools to plan, execute, and monitor IT projects within organizational settings.
- Develop and integrate information systems that align with organizational goals and strategies, supporting innovation and sustainable growth.
- Perform comprehensive systems analysis and design, including requirements gathering, modeling, prototyping, and evaluating enterprise system architectures such as ERP, CRM, and SCM.
- Assess and mitigate organizational information security risks by applying appropriate principles, technologies, and best practices in cybersecurity.
Po-Lo Matrix
| LO | Average | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| L01 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| L02 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| L03 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| L04 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| L05 | - | - | - | - | - | - | - | - | - | - | - | - | - |
| L06 | - | - | - | - | - | - | - | - | - | - | - | - | - |