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| ISL4033 | Investment Project Evaluation | 3+0+0 | ECTS:5 | | Year / Semester | Fall Semester | | Level of Course | First Cycle | | Status | Elective | | Department | DEPARTMENT of BUSINESS | | Prerequisites and co-requisites | None | | Mode of Delivery | Face to face | | Contact Hours | 14 weeks - 3 hours of lectures per week | | Lecturer | Prof. Dr. Mustafa EMİR | | Co-Lecturer | Prof. Dr. Mustafa EMİR, Prof. Dr. Hüseyin DAĞLI, Assist. Prof. Dr. Ahmet KURTARAN, Assist. Prof. Dr. Bünyamin ER | | Language of instruction | Turkish | | Professional practise ( internship ) | None | | | | The aim of the course: | | The objective of this course is to provide materials, and exercises that will allow the student to deal with the process of decision making with respect to investment in fixed assets. Decision making covers to answer the following question: Should a proposed project be accepted or should it be rejected? Evaluating capital investment proposals, student should be able to compare cash inflows that may spread out over many years with cash outflows that generally occur close to the present with and without consideration of risk factors. |
| Learning Outcomes | CTPO | TOA | | Upon successful completion of the course, the students will be able to : | | | | LO - 1 : | list preparing stages of investment project. | 3 | 1,3 | | LO - 2 : | explain preparing stages of investment project. | 3 | 1,3 | | LO - 3 : | use investment project evaluation methods. | 3 | 1,3 | | LO - 4 : | compare investment project evaluation methods. | 3 | 1,3 | | LO - 5 : | arrange investments of the business according to results to get from investment project evaluation methods. | 3 | 1,3 | | CTPO : Contribution to programme outcomes, TOA :Type of assessment (1: written exam, 2: Oral exam, 3: Homework assignment, 4: Laboratory exercise/exam, 5: Seminar / presentation, 6: Term paper), LO : Learning Outcome | | |
| Process of investment decision making, comparing projects with unequal lives, problem of inflation, cash flows and other topics in capital budgeting, capital budgeting and risk analysis, cost of capital, determining total cash outflow, implications of price increases, investment discount. |
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| Course Syllabus | | Week | Subject | Related Notes / Files | | Week 1 | Course outline | | | Week 2 | The basic concepts; classification of investments, project and investment project concepts, important of investment projects. | | | Week 3 | The stages of investment projects, project idea and pre-analysis, pre feasibility study. | | | Week 4 | The stages of feasibility study; economic analysis, technical analysis and financial analysis | | | Week 5 | Market researching, demand forecast of investment project.
| | | Week 6 | Project location selection ; critical factors that infuence location selection, methods of location selection | | | Week 7 | Project capacity selection; capacity concept, capacity, relation between capacity and cost, critical factors that infuence capacity selection | | | Week 8 | Technical analysis of investment projects, technical evaluation subjects | | | Week 9 | Mid-term exam | | | Week 10 | Financial analysis of investment projects; cash outflows of investment projects (fixed assets investment, working capital investment, manifacturing and operating cost etc). | | | Week 11 | Financial analysis of investment projects; cash inflows of investment projects ( sales revenues, salvage value, etc). | | | Week 12 | Capital budgeting techniques; accounting rate of return and payback period techniques. | | | Week 13 | Capital budgeting techniques; time value of money, discounted payback period, net present value and profitability index techniques | | | Week 14 | Capital budgeting techniques; internal rate of return and modified internal rate of retun | | | Week 15 | Review
| | | Week 16 | End-of-term exam | | | |
| 1 | Emir, M. 2008; Yatırım Projelerinin Hazırlanması ve Değerlendirilmesi, Derya Kitabevi, Trabzon. | | | |
| 1 | Sarıaslan, H. 1994; Yatırım Projelerinin Değerlendirilmesi, Turhan Kitabevi, Ankara. | | | |
| Method of Assessment | | Type of assessment | Week No | Date | Duration (hours) | Weight (%) | | Mid-term exam | 9 | 11/2022 | 1 | 50 | | End-of-term exam | 16 | 01/2023 | 1 | 50 | | |
| Student Work Load and its Distribution | | Type of work | Duration (hours pw) | No of weeks / Number of activity | Hours in total per term | | Yüz yüze eğitim | 3 | 14 | 42 | | Sınıf dışı çalışma | 2 | 14 | 28 | | Arasınav için hazırlık | 21 | 1 | 21 | | Arasınav | 1 | 1 | 1 | | Dönem sonu sınavı için hazırlık | 30 | 1 | 30 | | Dönem sonu sınavı | 1 | 1 | 1 | | Total work load | | | 123 |
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