Kurso programos

Grįžti

Project Finance Management Course designed to MBA‘s of International Project Management program

VILNIUS UNIVERSITY
BUSINESS SCHOOL
Project Financial Management


Course designed to MBA‘s of International Project Management program

Prepared by prof. dr. Arvydas Paškevičius



       The aim of the Project Financial Management course – prepare highly skilled professionals who are able to define and implement business and public sector strategies in the form of projects, programs and portfolios in a dynamic, continuously changing international business environment, and in the context of policy priorities of Lithuania and the European Union..

        Prerequisites to study Project Financial Management are subjects previously graduated by students: finance management, microeconomics, macroeconomics and accounting.

         Project Financial Management course develop theoretical and practical skills in financial management of capital investment that would facilitate abilities to plan, organize, analyse and assess a company‘s development and expansion projects.

       The purpose of the course is not only to acquaint the students with the fundamental concepts of Project Financial Management but also to formulate practical skills while solving elementary financial problems and preparing and presenting the case study. Therefore, the course includes not only theoretical lectures but also practical work and home assignments. The course consists of 32 hours, 5 credits.

 

VMA

 


SYLLABUS



1. Introduction to Project Financial Management (Stefano Gatti, Project Finance in Theory and Practice,)

1.1. Understanding of the Project Finance

1.2. Methods of the Project financing

1.3. Project financing sources

1.4. Contract structure of a Project Finance Deal

        Lecture Notes

        

2. Financial Statements and Cash Flow (Chapter 2 and section 1 of Chapter 3 “Fundamentals of Corporate Finance, Ross, S. A”)

2.1. The Balance sheet

2.2. The Income Statement

2.3. Cash flow

2. 4. Cash Flow and Financial Statements

        Lecture Notes        

       Chapter 2 Textbook      Test Questions

      Chapter 3 Textbook ( section 1)   Q&P (page 88-92. Only 11, 16, 29 questions and problems)

      Test Questions (only 1, 2, 3, 36, 37, 38, 39, 40, 41, 42, 75, 76, 77 questions)


3. The Time Value of Money(Chapter 5 and 6 “Fundamentals of Corporate Finance, Ross, S. A)”

3.1. Future Value and Compounding

3.2. Present Value and Discounting

3.3. More on Present and Future Values.

3.4. Present and Future Values of Multiple Cash Flows

3.5. Valuing Level Cash Flows: Annuities and Perpetuities

3.6. Comparing Rates: The Effect of Compounding

3.7. Loan Types and Loan Amortization

       Lecture Notes

      Chapter 5   Textbook   Q&P (page 152 – 153. Only 1-9 questions and problems)

     Test Questions

     Chapter 6   Textbook   Q&P (page 191 – 192. Only 1-15 questions and problems)

     Test Questions  


4.   Net Present Value and Other Investment Criteria (Chapter 9 “Fundamentals of Corporate Finance, Ross, S. A”)

4.1. Net present value

4.2. The Payback Rule

4.3. The Payback Rule

4.4. The Average Accounting Return (AAR)

4.5. The Internal Rate of Return (IRR)

4.6. The Profitability Index

       Lecture Notes

      Chapter 9   Textbook    Q&P  (page 305 – 307. Only 1-16 questions and problems)

     Test Questions   


5. Making Capital Investment Decisions (Chapter 10 ”Fundamentals of Corporate Finance, Ross, S. A”)

5.1. Project Cash Flows: A First Look

5.2. Incremental Cash Flows

5.3. Pro Forma Financial Statements and Project Cash Flows

5.4. More on Project Cash Flow

5.5. Alternative Definitions of Operating Cash Flow

5.6. Some Special Cases of Cash Flow Analysis

      Lecture Notes

      Chapter 10   Textbook    Q&P (page 344 – 345. Only 1-15 questions and problems)

      Test Questions    


6. Project Analysis And Evaluation (Chapter 11 “Fundamentals of Corporate Finance, Ross, S.A”)

6.1. Evaluating NPV Estimates

6.2. Scenario and Other What-If Analyses

6.3. Break-Even Analysis

6.4. Operating Cash Flow, Sales Volume, and Break-Even

6.5. Operating Leverage

6.6. Capital Rationings

Lecture Notes      Textbook    Q&P (page 374 – 376. Only 1-3, 5-15 questions and problems)

      Test Questions

 

 

CASE ANALYSIS AND PRESENTATION

 

 

Student’s registration of case studies  


Send requests and presentations: arvydas@paskevicius.com

The example of presentation: Butler Lumber Company   Presentation    Excel

Slide presentations limited to a duration of 10-15 minutes. (desirable in the University Business School form of presentations). Presentations file name must be shortened name of the case. Calculation tables, as additional material illustrating the decision is contained in the Excel form. The presentation you have to send no later than 24 hours before the presentation. The first slide specify: the theme and the author (s) surname (s).

Case studies do not have a straight answer. Different people shall bring a unified solution, so the analysis of the case must present YOUR decision and justify it argumentative. The analysis of the test should be kept in mind that the latest information about the problem and the company can be find on the internet.

Assessment of case analysis and presentation:

1. Presentations submission timeliness, slide quality, oratorical art, audience involvement in the case study 0-3.

2. The complexity of the analysed problem 0-3

3. Case studies breadth, i.e. quite a lot of work done 0-4

4. Depth of the case analysis, i.e. use sophisticated analytical techniques 0-4

5. It was collected an additional, interesting and valuable material on the Internet. For example how the company is now doing, what the consequences, modern innovations. 0-2

6. A summary of the findings, what is memorable, the most valuable of the case presented, where you can apply the acquired knowledge 0-2

7. Working as opponent of the peer presentations or active participation in the cases analysis 0-1.  Good questions or comments prized pluses, 3-4 pluses equal to 1 point.


CASES 


1.    Lockheed Tri Star and Capital Budgeting. Pages 367-369.  Presentation    Excel

Erdem İnce

2.    Merck & Company: Evaluating a Drug Licensing Opportunity. Pages 371-376.

3.    Tree Values. Pages 377-379.   Presentation    Excel

Viktoria Kacyzna
Vitali Ivasenka
Davit Tsulukidze

4.    The Super Project. Pages 381-394.   Presentation    Excel

Viktorija Vosyliutė
Utku Boyra
Morta Grigaliūnaitė

5.    NetFlix.com, Inc. Pages 395-403.   Presentation    Excel

Brigita Lapinskiene 
Evelina Butkute 
Daniel Gonzalez de Heredia 
Indre Janciute
Irina Morozova

6.    A-Rod: Signing the Best Player in Baseball. Pages 405-418.   Presentation    Excel

Ieva Juskenaite
Ugne Anelauskaite
Agne Macionyte
Edgaras Bogdanovic
Deividas Beneckas

7.    Ocean Carriers. Pages 419-423.

8.    Whirpool Europe. Pages 425-430.   Presentation    Excel

 Kondratyuk Yunona
Kutateladze Nutsa
Kariniauskaitė Ingrida
Svensson Christian Weybye

9.    Health Development Coporation. Pages 431-434.    Presentation    Excel

 Kondratyuk Yunona
Kutateladze Nutsa
Kariniauskaitė Ingrida
Svensson Christian Weybye



SCHEDULE

 

 

#

W.D.

Date

Time

Room

Topic

Notes

1

Thu

25-Oct

18:00-19:30

201

Introduction to Project Finance Management. Financial Statements and Cash Flow. The Time Value of Money

Homework: Chapter 2 Test Questions; Chapter 3  Questions and Problems # 6, 9, 14.Chapter 3 Test Questions # 1, 2, 3, 36, 37, 38, 39, 40, 41, 42, 75, 76, 77.

2

Thu

25-Oct

19:40-21:10

201

The Time Value of Money. Discounted Cash Flow Valuation

3

Fri

26-Oct

16:20-17:50

201

Net Present Value and Other Investment Criteria

Homework:  Chapter 5  Questions and Problems # 1-9. Chapter 5 Test Questions. Chapter 6  Questions and Problems # 1-15. Chapter 6 Test Questions.

4

Fri

26-Oct

18:00-19:30

201

Making Capital Investment Decisions

5

Sat

27-Oct

9:00-10:30

201

Making Capital Investment Decisions

Homework:  Chapter 9  Questions and Problems # 1-16. Chapter 9 Test Questions.

6

Sat

27-Oct

10:40-12:10

201

Project analysis and evaluation.

7

Sat

27-Oct

12:50-14:20

201

Ch 2 TQ review. Ch 3  Q&P # 6, 9, 14. Ch 3 TQ # 1, 2, 3, 36, 37, 38, 39, 40, 41, 42, 75, 76, 77 review 

8

Sat

27-Oct

14:30-16:00

201

Ch 5 Q&P # 1-9. Ch 6 Test Questions           Ch6 Q&P # 1-15. Ch 6 Test Questions

9

Thu

8-Nov

18:00-19:30

201

Ch 9 Q&P # 1-16. Ch 9 Test Questions

10

Thu

8-Nov

19:40-21:10

201

Ch 10 Q&P # 1-15. Ch 10 Test Questions  

11

Fri

9-Nov

16:20-17:50

201

 Ch11 Q&P # 1-3, 5-15. Ch 11 Test Questions.

Homework:  Chapter 10  Questions and Problems # 1-15. Chapter 10 Test Questions.

12

Fri

9-Nov

18:00-19:30

201

Case study prezentations

13

Sat

10-Nov

9:00-10:30

201

Case study prezentations

Homework: Preparation for examination. Self-test.

14

Sat

10-Nov

10:40-12:10

201

Case study prezentations

15

Sat

10-Nov

12:50-14:20

201

Case study prezentations

16

Sat

10-Nov

14:30-16:00

201

 Ch11 Q&P # 1-3, 5-15. Ch 11 Test Questions.

.

 .

Consultation

22-Nov

 18:30

EC

EXAM

 

 

 

How do I find the examination center?

 

 

LITERATURE

 

 

1. Fundamentals of Corporate Finance, Ross, S. A. 2010.

2. CaseProblems in Finance / edited by W.Carl Kester, Richard S. Ruback, Peter Tufano.2005

3. A Guide to the Project Management Body of Knowledge (PMBOK Guide) 4th Editon 2008

4. Stefano Gatti, Project Finance in Theory and Practice, Academic Press, 2008

5. EitemanD. and Stonehill A., and M.H. Moffett, Multinational BusinessFinance: International Edition, 12/E, ISBN-10: 0136096689; 2010 .

6. Principles of Corporate Finance, Brealey, Myers, 2010.

7. Financial Management, Ray M. Brooks. 2010.

8. Mastering Financial modelling in Microsoft Excel. 2006

 

EVALUATION

 

 

Assessment requirements:

Analysis and solutions of tasks and problems at seminars, case study task and examination.

Final assessment criteria:

The grade assigned for problem solution at seminars is multiplied by 0.15.

The grade assigned for case study task solution is multiplied by 0.35.

Examination shall be taken by electronic means at the Examination center. Students are required to solve tasks presented in the test. The grade of the examination is multiplied by 0.5 and shall be added to the final result.

Composition of the final accumulative grade

The final accumulative grade shall be composed of:

Problem solutions at seminars – 15 %

Case study task solution – 35%

Examination – 50%


                                        RESULTS    






Grįžti