Investment Evaluation

The understanding of the basic concepts concerning the advisability of the projects and investments and their multidimensional nature of the overall importance in the viability and growth. Also understanding of modern methodologies and evaluation procedures of private and public investment, in order to have capacity for their implementation of investment projects.

Objectives

1. Understand the meaning of the evaluation and the importance of the evaluation process for appropriate planning and the future economic viability of a private or public investments. 2. To apply modern methods of evaluation of investment projects in the private and public sectors. 3. To participate in the planning and public sector project appraisal process (Municipalities Programs, Regions, Ministries) in terms of optimizing their financial returns.

Prerequisites

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Syllabus

Investment Rating (1/5) - Chapter. - Interest (simple-complex). - Interest. - Final Value. - Problems. - Suspenders. - overdue Rada. - future Rada. - Dienekis Rada. - Dienekis Rada with geometric growth conditions. - Problems. Investment Rating (2/5) - Investment Analysis. - Required return rate. - Required rate of return without risk. - Required rate of return, risk conditions. - Expected yield rate. - Rada annual net cash. - The method of payback period (Payback). - Disadvantages of the payback period method. - Discounted payback period. - The method of reimbursement rate to the carrying amount of the investment AAR. - The method of net present value. Investment Rating (3/5) - The method of internal reimbursement rate. - Process Calculation of Internal Performance by linear interpolation. - Method of equivalent net annual flow. - The method of profitability index (profitability index). - Methods discounted net cash flows. - Weaknesses Method Internal Rate of Return. - Mutually exclusive investments. - Alternative determination of CFR. - Internal rate of return R. - Modified internal rate of return R *. Investment Rating (4/5) - Mutually exclusive investments with different initial cost. - Curves (NPV) of mutually exclusive investments. - Mutually exclusive investments with different picture of annual net cash flows. - Mutually exclusive investments. Investment Rating (5/5) - Risk Analysis. - Required return rate. - Cost of Capital. - Synthetic Parts of Capital Cost. - Cost of borrowed funds. - Capital Asset Pricing Model. - Weighted Average Cost of Capital. - Equity Valuation Model Based dividends. - Risk Premium Calculation arbitrarily. - Sensitivity Analysis (Sensitivity Analysis) - Risk analysis using scenarios. - Tables normal distribution. - The method of profitability index. - Methods discounted net cash flows. - Weaknesses Method Internal Rate of Return.