MPF_FEFI Efectiveness of investment

Faculty of Economics and Administration
Spring 2018
Extent and Intensity
1/2. 4 credit(s). Type of Completion: zk (examination).
Teacher(s)
Ronan DOARE (lecturer)
Ing. František Kalouda, CSc., MBA (lecturer)
Ing. František Kalouda, CSc., MBA (seminar tutor)
Guaranteed by
Ing. František Kalouda, CSc., MBA
Department of Finance - Faculty of Economics and Administration
Contact Person: Mgr. Jana Hegerová
Supplier department: Department of Finance - Faculty of Economics and Administration
Timetable
Mon 11:05–11:50 MT205
  • Timetable of Seminar Groups:
MPF_FEFI/01: Mon 12:50–14:30 MT205, F. Kalouda
Course Enrolment Limitations
The course is only offered to the students of the study fields the course is directly associated with.

The capacity limit for the course is 24 student(s).
Current registration and enrolment status: enrolled: 0/24, only registered: 0/24
fields of study / plans the course is directly associated with
Course objectives
The course is devoted to the models of the assessment of the investment efficiency in public administration. Presented models are based on both focus on investment performance as well as its costs. These models are applicable to the manufacturing company as well as to the financial institutions (bank, insurance company etc.) and state authority or public administration (council). Within the selection of the presented methods was preffered those normally used by the banking sector (not only in the Czech Republic) in the process of deciding on the allocation of credits. The important component of the course is an overview of techniques that are used in cases of budget-driven companies. The course is devoted to the theory of project financing as well. Therefore, there is also obvious the practical usefulness of the knowledge for the management processess of public administration. The succesful absolvents of the course will dispose of representative theoretic platform for the assessment of the investment efficiency and will be able to apply the knowledge in practise, such as: a) in the financial management of public administration projects b) in the financial management of public administration institutions c) in the financial management of public administration subjects
Syllabus
  • Thematic plan of the course: 1 Financial management and financial decision making. Financial decision making in the short-term and long-term view (and capital planning). Specifics of the investment decision making. 2 Four standard methods I – two static methods (ARR, PB) 3 Four standard methods II – two dynamic methods (NPV, IRR) 4 The sources of investment financing (asset and capital structure). Basic rules of financing. 5 Investment risk. Net working capital (NWC) and financing strategy. Criteria of the financial analysis (bonding capacity and bakruptcy models). 6 Alternative methods of assessment of the investment efficiency I – Avarage rate of Return (PV). 7 Alternative methods of assessment of the investment efficiency II - Payback Period (DON) and Profitability Index (IZ). 8 Methods of assessment of the investment efficiency based on the costs I – avarage rate of annual costs (RN). 9 Methods of assessment of the investment efficiency based on the costs II – discounted costs method (DIN). 10 Real option as an instrument of the assessment of the investment efficiency. 11 Budget financing I – conventional budget methods (incremental, ZBB, CMP). 12 Budget financing II – new budget methods (PPB, KAIZEN, WCM and contingent approaches). 13 Project management and project financing. Thematic plan of the seminars: 1) Introductory seminar seminar organization conditions of eveluation and completion of the course case studies assignment 2) Static methods (ARR, PB) the principle of the static methods (unrespected time value of the money) ARR method (Average Rate of Return) PB method (Payback) static methods applicability 3) Dynamic methods (NPV, IRR) the principle of the dynamic methods NPV method (Net present Value) IRR method (Internal Rate of Return) comparison of NPV and IRR 4) Static and dynamic methods (standard). Test 1 task specification working out discussion of the problems resulted from the test 5) Bonding capacity and bankruptcy models the principle of the bonding capacity and bankruptcy models bonding capacity and bankruptcy model I – Z score model (for public company and limited company), bonding capacity and bankruptcy model II – Quick test (Q-test). bonding capacity and bankruptcy model III – Bonding Capacity indicator (BCI) 6) Alternative methods of assessment of investment efficiency - Average Rate of Return (PV), Payback Period (DON), Profitability Index (IZ), relation of the alternative methods of the investment efficiency assessment and standard methods 7) Cost-driven methods of the investment efficiency assessment (RN, DIN) - avarage rate of annual costs (RN), discounted costs method (DIN), relation of the cost-driven methods of the investment efficiency assessment to standard methods 8) Test 2 task specification working out discussion of the problems resulted from the test. Case studies presentation I 9) Case studies presentation II 10) Real option as an instrument of assessment of the investment efficiency - description of the real option method advantages, of the real option method in comparison with the NPV method and IRR method applicability of the real option methods. Test 3 task specification working out discussion of the problems resulted from the test 11) Budget financing I - conventional budget methods (incremental, ZBB, CMP), new budget methods (PPB, KAIZEN, WCM and contingent approaches). Case studies presentation III 12)Budget financing II - behaviar aspects of the budgeting, comparison of the conventional and new budget methods. Correction test (Test 1, Test 2 and Test 3) task specification working out discussion of the problems resulted from the test 13) Project management and project financing. Reserve.
Literature
    required literature
  • KALOUDA, František. Finanční analýza a řízení podniku, druhé rozšířené vydání (Financial Analysis and Management of the Firm, second, extemded edition). 2. vyd. Plzeň: Vydavatelství a nakladatelství Aleš Čeněk, 2016. 321 pp. Řízení a správa podniku. ISBN 978-80-7380-591-3. info
    recommended literature
  • KALOUDA, František. Finanční analýza a řízení podniku. 3. rozšířené vydání. Plzeň: Vydavatelství a nakladatelství Aleš Čeněk, 2017. 328 stran. ISBN 9788073806460. info
  • VALACH, Josef. Investiční rozhodování a dlouhodobé financování. 3. přeprac. a rozš. vyd. Praha: Ekopress, 2010. 513 s. ISBN 9788086929712. info
  • ŠOBÁŇOVÁ, Petra. Projektové řízení. Vyd. 2., reedice. Ostrava: Ostravská univerzita v Ostravě, 2010. 81 s. ISBN 9788073687496. info
  • FOTR, Jiří and Ivan SOUČEK. Investiční rozhodování a řízení projektů : jak připravovat, financovat a hodnotit projekty, řídit jejich riziko a vytvářet portfolio projektů. První vydání. Praha: Grada Publishing, 2011. 408 stran. ISBN 9788024732930. info
  • CABADA, Ladislav and Tereza ZÍKOVÁ. Projektové řízení ve veřejném sektoru. Plzeň: Vydavatelství a nakladatelství Aleš Čeněk, 2007. 155 pp. ISBN 978-80-7380-068-0. info
Teaching methods
Lectures, seminars, individual consultations, progress tests, team creation of the seminar paper and its presentation.
Assessment methods
The course is finished by the exam which is written as well as oral. Qualification for the exam is successfully passed at leat two of three tests and appropriate case study presentation. In case of the combined form of studies there is required three correctly prepared homeworks in addition. "Any copying, recording or leaking tests, use of unauthorized tools, aids and communication devices, or other disruptions of objectivity of exams (credit tests) will be considered non-compliance with the conditions for course completion as well as a severe violation of the study rules. Consequently, the teacher will finish the exam (credit test) by awarding grade "F" in the Information System, and the Dean will initiate disciplinary proceedings that may result in study termination."
Language of instruction
Czech
Further comments (probably available only in Czech)
Study Materials
General note: Část výuky probíhá ve francouzštině.
Information about innovation of course.
This course has been innovated under the project "Inovace studia ekonomických disciplín v souladu s požadavky znalostní ekonomiky (CZ.1.07/2.2.00/28.0227)" which is cofinanced by the European Social Fond and the national budget of the Czech Republic.

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The course is also listed under the following terms Spring 2013, Spring 2014, Spring 2015, Spring 2016, Spring 2017, Spring 2019, Spring 2020, Spring 2021.
  • Enrolment Statistics (Spring 2018, recent)
  • Permalink: https://is.muni.cz/course/econ/spring2018/MPF_FEFI