BA5815 PROJECT EVALUATION AND FINANCING
| Course Code: | 3125815 |
| METU Credit (Theoretical-Laboratory hours/week): | 3 (3.00 - 0.00) |
| ECTS Credit: | 8.0 |
| Department: | Business Administration |
| Language of Instruction: | English |
| Level of Study: | Graduate |
| Course Coordinator: | Assoc.Prof.Dr. ÇAĞRI TOPAL, Lecturer Dr. ERKAN UYSAL |
| Offered Semester: | Fall and Spring Semesters. |
Course Objectives
This course deals mainly with the design and analysis of new investment projects. For this purpose, a stepby-step approach for the preparation of project feasibility studies will be presented briefly after clarifying the interrelationships among basic concepts, such as planning, programming, project system, and investment. The course heavily focuses on methods and techniques used in appraising private and social profitability of new investment projects. Additionally, a subject of greater interest in this course will be the description and discussion of various statistical methods and simulation techniques which have found wider application in determining and measuring the degree of risk associated with investment projects. Moreover, the effect of inflation as a critical factor in evaluating investment projects will also be discussed in detail within the context of risk analysis. Furthermore, project financing methods such as leasing, venture capital, private equity, and build-operatetransfer (BOT) will be explained and discussed with respect to implications for Turkish economic environment.
Course Content
This course mainly deals with the design and analysis of new investment projects. Project financing approaches; Leasing, Venture Capital and Build-Operate-and-Transfer are discussed in the context of Turkey.
Course Learning Outcomes
Upon successful completion of this course, students should be able to:
Course Specific Skills:
1. Understand the importance of investment projects from both macroeconomic and corporate perspectives
2. Analyze a new market and develop a marketing strategy to introduce a new product
3. Understand facility location problems and use management science techniques to solve these problems
4. Analyze and compare alternative technologies to select with regards to optimal capacity
5. Understand the cost structure of a newly established production facility
6. Understand the concept of time value of money and its significance in evaluation of investment projects
7. Generate proforma financial statements by using the information generated from the marketing analysis and the technical analysis 8. Understand the importance of the concept of cost of capital in relation to determining discount rate
9. Be able to use of concepts such as NPV, IRR, MIRR etc.
10. Analyze the effects of inflation in project evaluation
11. Describe the risks associated with investment projects
12. Understand the nature and risks of international investment projects and differences from domestic investments
13. Build business model in excel spreadsheet to analyze the effects of managerial decision on financial statements
14. Learn the concepts and techniques to deal with associated risks in new investment projects
15. Develop simulation models to evaluate new investment projects
16. Understand project financing methods such as BOT, leasing, venture capital etc.
17. Develop decision making skills
Program Outcomes Matrix
| Level of Contribution | |||||
| # | Program Outcomes | 0 | 1 | 2 | 3 |
| 1 | They attain advanced level of knowledge in the functional areas of business administration such as strategic management, marketing, accounting, finance, organization management, human resources, and operations management. | ✔ | |||
| 2 | They are capable of synthesizing the knowledge that they attained in the area of business administration with the knowledge base that they developed in their undergraduate specialisms. | ✔ | |||
| 3 | They are capable of identifying and analyzing legal, environmental and social factors, which influence the basic functional areas of the business administration. | ✔ | |||
| 4 | They understand and implement rational, systematic and scientific approaches effectively in problem solving and decision-making processes. | ✔ | |||
| 5 | They are capable of applying, analyzing, synthesizing and evaluating the knowledge they developed in diverse fields efficiently. | ✔ | |||
| 6 | They are capable of transferring information by using efficient verbal and written communication techniques. | ✔ | |||
| 7 | They are capable of performing professional communication effectively also in English. | ✔ | |||
| 8 | They know methods of performing efficient teamwork. | ✔ | |||
| 9 | They are capable of understanding and synthesizing academic and scientific research in their areas and able to transform such research into useful knowledge. | ✔ | |||
| 10 | They have competence in all of the stages of scientific research and processes. | ✔ | |||
| 11 | They are knowledgeable in the areas of professional ethics and responsibility. | ✔ | |||
| 12 | They are capable of utilizing their knowledge and skills efficiently in global and multicultural contexts. | ✔ | |||
| 13 | They are knowledgeable in the issues of environment, social responsibility, social justice, quality and cultural values. | ✔ | |||
| 14 | They have a creative, innovative and critical perspective. | ✔ | |||
0: No Contribution 1: Little Contribution 2: Partial Contribution 3: Full Contribution