Skip to content
- Introduction to Financial Decisions: the general economic environment, supply and demand, consumption and investment, effects of investments at individual, economy and societal level.
- Accounting and costing principles. Balance Sheets and Fiscal Results. Financial ratios. Break-even analysis. Profit maximization. Cost estimation techniques. Cobb-Douglas function.
- Time value of money: Interest and interest rate, present and future value of the amount, present and future value of annuity, inflation, opportunity cost, discount rate.
- Cash Flow Analysis: investment costs, revenues, costs, depreciation, amortization, interest, net cash flow, fixed and current prices, etc.
- Investment Criteria: Net Present Value – NVP, Internal Rate of Return – IRR, Payback period, Annual Equivalent Cost, Benefit – Cost Ratio. Evaluation of mutually excluding alternatives, Differential cash flows.
- Estimation of ownership costs, comparison of implementation of works with own resources or with subcontractors, appropriate time for equipment replacement.
- Uncertainty analysis: break-even investment analysis, sensitivity analysis, risk analysis.
