Course Details

Economy of Investment

Academic Year 2025/26

BVA008 course is part of 1 study plan

​ BPC-SI / E Winter Semester 4th year

Course Guarantor

prof. Ing. Jana Korytárová, Ph.D.

Institute

Institute of Structural Economics and Management

Language of instruction

Czech

Credits

6 credits

Semester

winter

Forms and criteria of assessment

course-unit credit and examination

Offered to foreign students

Not to offer

Course on BUT site

https://www.vut.cz/en/students/courses/detail/289883

Lecture

13 weeks, 2 hours/week, elective

Syllabus

  • 1. Investment and economy growth, sorts of investment possibilities.
  • 2. Theoretical appraisal for evaluation of economic efficiency of investment, time value of money.
  • 3. Technical and economic study of the investment project – Feasibility study.
  • 4. Specification of revenues and costs in various stages of the life cycle of the project.
  • 5. Financing of construction investment projects, resources and costs.
  • 6.–7. Creation of data for economic evaluation of investment projects, determining cash flows, methods for determining the discount rate.
  • 8.–9. Economic analysis of investment projects – calculations of NPV, IRR, LCC and their interpretation.
  • 10. Analysis of sources and causes of uncertainty, inflation.
  • 11. Profitability analysis, break even point.
  • 12.–13. Sensitivity analysis, qualitative and quantitative risk analysis.

Exercise

13 weeks, 2 hours/week, compulsory

Syllabus

  • 1. Basic ratios for evaluation of the economic efficiency of investment.
  • 2. Returns and inflation, the internal rate of return calculation, calculation example of bonds.
  • 3. Calculation of the real net present value.
  • 4. Calculation of life cycle costs.
  • 5. Analysis of uncertainties – profitability analysis.
  • 6. Analysis of uncertainties – sensitivity and probability analysis.
  • 7. Assignment of project – production of wooden windows.
  • 8. Continuation of project – resources of business plan financing.
  • 9. Continuation of project – profit and loss statement, cash flow statement.
  • 10. Optimization of financial resources - credit, leasing, bonds.
  • 11. Continuation of optimization of financial resources.
  • 12. Credit test.
  • 13. Credit.