Course content

Time value of money (calculation), budgeting cash flow, inflation, taxes, calculations and management of working capital, NPV, IRR, payback period method, capital rationing, risk and return for a single asset and a portefolio, CAPM, sensitivity test, capital structure/WACC, home loans, bonds, leasing, instalments, The Binominal model, the Black-Scholes model

Learning outcome

The students shall be able to:
-Budget cash flows, including inflation and taxes.
-Analyze and evaluate a project by models using TVM-concepts.
-Calculate the cost of capital by CAPM and evaluate the risk of a single asset and of a portifolio of assets.
-Evaluate the risk by sensitivity tests.
-Calculate and evaluate the most common financial instruments-Anderstand and gowern working capital-Use the Binominal model, the Black-Scholes model

Learning methods and activities

Nettbasert Læring|Obligatoriske oppgaver

Obligatoriske arbeidskrav:

4 Exercises
Details concerning course requirements will be presented at the beginning of the semester.

Compulsory assignments

• Approved exercises

Specific conditions

Recommended previous knowledge

SMF 1042

REA1131

Course materials

Bøhren, Øyvind og Per Ivar Gjærum (siste utg.): Prosjektanalyse. Skarvet forlag. ISBN 82-992405-6-5Bøhren, Øyvind og Dag Michalsen (siste utgave): Finansiell Økonomi, Teori og praksis. Skarvet Forlag. ISBN 82-992405-8-1.(Lærebøker kan bli erstattet av nyere utgave av samme bok, hvis den foreligger ved semesterstart)

Credit reductions