Economic Assessment of Investments

Објавено: October 12, 2018
  1.    Course Title Economic Assessment of Investments
  2.    Code 3ФЕИТ09Л008
  3.    Study program EAOIE, EES, EEUM, KHIE, KSIAR, KTI, TKII
  4.    Organizer of the study program (unit, institute, department) Faculty of Electrical Engineering and Information Technologies
  5.    Degree (first, second, third cycle) First cycle
  6.    Academic year/semester IV/8   7.    Number of ECTS credits 3.00
  8.    Lecturer Dr Petar Krstevski
  9.    Course Prerequisites

10.    Course Goals (acquired competencies):  This course is designed to provide basic knowledge in the methods for economic assessment. The students will be trained to perform cost benefit and risk analysis of investments.

11.    Course Syllabus: Introduction to financial analyses. Classification of costs. Time value of money. Cash flow. Liquidity. Shares. Risk factor of investments. Calculation of Weighted average cost of capital (WACC). Methods for economic assessment: Net present value method, Internal rate of return method, Minimal cost method, Equivalent annual value method, Period of return of investments. Financial and economic profitability of investments. Risk analysis in economic assessment. Evaluation of investment programs.

12.    Learning methods:  Lectures and recitations with presentations and simulations, teacher-student interaction, homework, projects.

13.    Total number of course hours 2 + 1 + 0 + 0
14.    Distribution of course hours 180
15.    Forms of teaching 15.1. Lectures-theoretical teaching 45
15.2. Exercises (laboratory, practice classes), seminars, teamwork 30
16.    Other course activities 16.1. Projects, seminar papers 30
16.2. Individual tasks 30
16.3. Homework and self-learning 45
17.    Grading 17.1. Exams 20
17.2. Seminar work/project (presentation: written and oral) 20
17.3. Activity and participation 10
17.4. Final exam 50
18.    Grading criteria (points) up to 50 points     5 (five) (F)
from 51 to 60 points     6 (six) (E)
from 61 to 70 points     7 (seven) (D)
from 71 to 80 points     8 (eight) (C)
from 81 to 90 points     9 (nine) (B)
from 91 to 100 points   10 (ten) (A)
19.    Conditions for acquiring teacher’s signature and for taking final exam Participation in lectures and recitations.
20.    Forms of assessment During the semester, there are two mid/end-term partial exams (120 min each). Besides these exams, any student must complete and submit the required homework/project assignments, according to the schedule published at the course web site. For the students that will not be successful at the partial exams there is additional opportunity to do final exam (180 min.).
The final mark is determined from the weighted average of scores from the exams and homework/project assignments.
During the exams, it is not allowed to use any literature in printed or electronic form. Calculators are allowed, but not mobile phones, tablets or similar electronic devices
21.    Language Macedonian and English
22.    Method of monitoring of teaching quality Internal evaluation and questionnaires.
23.    Literature
23.1. Required Literature
No. Author Title Publisher Year
2 Daniel Kirschen, Goran Strbac Fundamentals of Power System Economics John Wiley & Sons 2004
23.2. Additional Literature
No. Author Title Publisher Year
1 Paul A. Samuelson, William D. Nordhaus  Economics  McGraw-Hill / Mate  2011
2  Donald G. Newnan, Ted G. Eschenbach, Jerome P. Lavelle  Engineering Economic Analysis  Oxford University Press  2004
3  Hisham Katib

Economic evaluation of projects in the Electricity Supply Industry

 Institution of Engineering and Technology, London, United Kingdom  2003