Course - Investment and Financial Analysis - AE201115
Investment and Financial Analysis
About
About the course
Course content
Introduction to basic investment and financing analyzes and their application. After completing the course, the student must understand the importance of such analyzes and be able to perform them and give recommendations based on the results.
Learning outcomes:
- Understand the time value of money
- Prepare cash flows with varying assumptions and variables such as inflation, working capital, time periods etc.
- Apply basic capital market and portfolio theory
- Calculate different capital costs
- Carry out basic profitability and risk analyses
- Evaluate different investment/financing scenarios and make recommendations based on relevant theories
Learning outcome
Knowledge:
- The student will have knowledge about the importance of cash flows in investment decisions.
- The student will have knowledge about the time value of money and how it affects the profitability of investments.
- The students will have knowledge of properties that affect the return requirement for an investment.
Skill:
- The student should be able to interpret and make decisions based on different investment calculations.
- The student will know which variables that are important to decision-making.
- The student should be able to carry out a quantitative analysis to rank different investment and financing options.
- The student should be able to calculate the relevant capital cost.
General competence:
- The student will understand how central investment analysis is for the entire enterprise.
- The student should be able to make use of investment analysis in practical situations.
Learning methods and activities
- Plenary lectures
- Practice sessions
- Self study
- Group work
Compulsory assignments
- Mandatory assignment
Further on evaluation
Compulsory attendance at practice sessions may be required and up to five written assignments must be passed. Mandatory assignments are specified at the start of the semester.
Students who have been approved for mandatory prerequisites in previous attempts are exempted from mandatory assignments in later attempts at the exam, unless significant changes are made to the course content. The subject teacher determines validity.
Individual, 4 hour, written school exam with Excel.
Permitted aids for the exam: Interest rate table and approved calculator in accordance with NTNU's aids code B-D "specific simple calculator". Other calculators allowed in the course are: Casio FC-100V, Casio FC-100V-2 and Texas Instruments - BAII Plus.
Specific conditions
Admission to a programme of study is required:
Biomarine Innovation (298BMI)
Business Administration (BØA)
Marketing, Innovation and Management (359ML)
Shipping management (432SM)
Recommended previous knowledge
The course builds on knowledge from courses in Introduction to business economics, as well as the basic subjects in mathematics, statistics and microeconomics.
Required previous knowledge
None.
Course materials
The syllabus will be announced at the start of the semester.
Credit reductions
| Course code | Reduction | From |
|---|---|---|
| BØA2200 | 7.5 sp | Spring 2017 |
| AE201106 | 7.5 sp | Autumn 2020 |
| BØA2001 | 7.5 sp | Autumn 2020 |
| BØA8004 | 7.5 sp | Autumn 2020 |
| SMF2111F | 7.5 sp | Autumn 2020 |
| TIØ4105 | 5 sp | Autumn 2020 |
Subject areas
- Economics and Administration