Preinvestment Analysis

Number

invr

ECTS

3.0

Level

intermediate

Overview

Investments are essential for the success of companies and projects. Investment appraisal is an important element of profitability analysis and checks whether a specific investment project should be realised from a financial point of view.

Static investment appraisal:

Cost comparison calculation
Profit comparison calculation
Profitability comparison calculation (ROI)
Amortisation comparison calculation (payback) Dynamic investment calculation:
Net present value
Annuity method
IRR (Internal Rate of Return) and Baldwin interest rate
Dynamic payback method

Special areas of investment appraisal:

Fisher rate
Mapping of risk
Changes in net current assets
Different useful lives
Time of commissioning
Replacement date
Investment programmes
Tax effects

Learning objectives

Students are able to

apply the static and dynamic calculation methods to specific situations and critically assess the results
map and assess special influences in the investment calculation

Previous knowledge

Business administration (kbwl), accounting (krw) or commercial vocational baccalaureate
Cost accounting systems (kosr)

Exam format

Final written exam

Additional information

Excel is used in the module. Excel can be used (in whole or in part) in the final written exam.