|
|
| ISL4001 | ANALAYSIS OF INVESTMENT PROJECTS | 3+0+0 | ECTS:4 | | Year / Semester | Fall Semester | | Level of Course | First Cycle | | Status | Elective | | Department | DEPARTMENT of ECONOMETRICS | | Prerequisites and co-requisites | None | | Mode of Delivery | Face to face, Practical | | Contact Hours | 14 weeks - 3 hours of lectures per week | | Lecturer | Prof. Dr. Mustafa EMİR | | Co-Lecturer | None | | 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 | 1,2,3 | 1, | | LO - 2 : | explain preparing stages of investment project | 1,2,3 | 1, | | LO - 3 : | use investment project evaluation methods | 1,2,3 | 1, | | LO - 4 : | compare investment project evaluation methods | 1,2,3 | 1, | | LO - 5 : | arrange investments of the business according to results to get from investment project evaluation methods | 1,2,3 | 1, | | 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. |
| |
| Course Syllabus | | Week | Subject | Related Notes / Files | | Week 1 | Basic concepts related to investment projects. Investment types, the basic stages of investment projects. | | | Week 2 | Preparation of investment projects: the emergence of the idea of the project area and the most appropriate investment selection. The preparation of investment projects, feasibility analysis. | | | Week 3 | Economic analysis of investment projects: Market research, demand estimation and forecasting methods. | | | Week 4 | Site selection organization for investment projects. Organizations that affect the site selection factors. Site selection and location of the region. Establishment site selection methods. | | | Week 5 | Investment in the capacity of project selection. Capacity types, capacity, cost and capacity of the selection factors affecting relationship. | | | Week 6 | Technical analysis of investment projects. General description and technical evaluation issues. | | | Week 7 | Financial analysis of investment projects. Determination of cash flows of investment projects. Determination of period cash flow organization. The determination of the winter operation period cash. | | | Week 8 | A Evaluation of investment projects. Not take into consideration the time value of money ways: A simple method of profit rate, the average profit rate and repayment period method. Methods of evaluation. | | | Week 9 | Mid-term exam. | | | Week 10 | Internal profitability (efficiency) ratio method, internal rate of profitability with net present value method for the evaluation method. Adjusted internal profitability rate method. | | | Week 11 | Economic evaluation of life with different investment project. Common approach to life, and eternal life-year approach equal anuiye approach. Evaluation of investment projects in the inflationary environment. The effect of inflation on investment projects. | | | Week 12 | Evaluation of investment projects in the inflationary environment. | | | Week 13 | Risky investment projects evaluation methods to determine the overall risk concepts. Sensitivity analysis to measure the risk. Break-even point analysis, the safety margin, operating leverage, financial leverage and total leverage. | | | Week 14 | Sensitivity analysis to measure risk: Reduced cash flows method. Probability analysis to measure risk: Risk adjusted discount rate method, specificity equality approach. | | | Week 15 | Expected net present value method, the expected net cash flows method and decision tree method. | | | Week 16 | End-of-term exam | | | |
| 1 | Emir, M. 2008,Yatırım Projelerinin Hazırlanması ve Değerlendirilmesi, Derya Kitabevi, Trabzon. | | | |
| 1 | Sarıaslan,H. 2005, Yatırım Projelerinin Hazırlanması ve Değerlendirilmesi. | | | 2 | Bolak, M. 2005, İşletme Finanmanı, Birsen Yayınevi, İstanbul. | | | 3 | LEVY, H. and SARNAT, M. 1994. Capital İnvestment and Financial Decision, 5th Edition, Prentice Hall, New York. | | | |
| Method of Assessment | | Type of assessment | Week No | Date | Duration (hours) | Weight (%) | | Mid-term exam | 9 | 11/2023 | 1,25 | 50 | | End-of-term exam | 16 | 01/2024 | 1,3 | 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 | | Arasınav için hazırlık | 35 | 1 | 35 | | Arasınav | 1 | 1 | 1 | | Dönem sonu sınavı için hazırlık | 40 | 1 | 40 | | Dönem sonu sınavı | 2 | 1 | 2 | | Total work load | | | 120 |
|