Investment and Financial Analysis

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

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.

• Plenary lectures
• Practice sessions
• Self study
• Group work