| Number |
invr
|
| ECTS |
3.0 |
| Level |
intermediate |
| Overview |
Investment management is an essential element in analyzing a company's profitability. Methods and models of investment calculation are used for both the procurement of capital goods and projects. They allow for an objective decision from a financial management perspective.
Static methods
- cost comparison
- profit comparison
- return on investment
- payback
Dynamic methods
- net present value NPV
- annuities
- internal rate of return IRR
- Baldwin interest rate
- dynamic payback
Investment analysis
- Fisher rate
- future risk considerations
- impacts of changes in net working capital
- effects of inflation
- effects of taxes
- different useful lives
|
| Learning objectives |
Students are able:
- to apply static calculation methods to specific situations, to name strengths and weaknesses and to critically reflect the results;
- to identify differences between static and dynamic methods and to choose adequate methods in a specific situation;
- to correctly implement special conditions such as the impacts of investments on net working capital, different useful lives, or future risks in an investment; and to analyze the results of dynamic methods using a Fisher rate;
- to make a complex analysis of an investment for capital goods and to correctly interpret the results in terms of the impacts on cash flow, statement of financial positions and income statement.
|
| Previous knowledge |
- Konvergenz Rechnungswesen (krw)
- Konvergenz Betriebswirtschaftslehre (kbwl)
|
| Exam format |
Final written exam |
