Course content

• Budgeting of cash flows
• Interest
• Expense
• Calculation of present values and annuities
• Internal rate of Return
• Loan Tax and investment
• Inflation
• Capital Market Theory
• Required return
• Portfolio Theory
• Liquidity management
• Working capital
• Excel

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

Lectures. Students should work on assignments to learn the course material. Students are encouraged to work in groups.

Compulsory assignments

• Assignment

Recommended previous knowledge

The course builds on knowledge from courses in Introduction to business economics, Financial accounting and Management accounting and budgeting.

Required previous knowledge

None

Course materials

Boye, Knut, Koekebakker, Steen, Krakstad, Svein Olav og Oust, Are. Finansielle emner. Siste utg. Oslo, Cappelen akademisk forlag. Forelesningene, utdelte notater og oppgaver.

Credit reductions