Project Financial Management

Total Hours in Course120

Number of hours for lectures12

Number of hours for seminars and practical classes24

Independent study hours84

Date of course confirmation21.06.2018

Responsible UnitInstitute of Economics and Finance

Course developer

prof.

Ingrīda Jakušonoka

Dr. oec.

Prior knowledge

Ekon5144, Enterpreneurship Financing

Course abstract

Students acquire in-depth knowledge, skills and reflection abilities regarding the aspects of the basic principles of project financial management, so that it is possible to be successfully engaged in elaborating projects, to know sources of project financing, to be able to analyze and evaluate financial and economic indicators of projects, as well as to draw up a project cash flow and a budget.

Learning outcomes and their assessment

1) Students will be able to demonstrate the understanding of the evolution of project financial management and the basic principles, the necessity for project financial management and the stages of it – discussions in classes.
2) Demonstrate the understanding of potential sources of financing projects and whether they are appropriate for the particular kind of project as well as cash flow and its management – test with calculation.
3) Demonstrate the knowledge of project profitability assessment methods and how to apply them in various situations – test with calculations.
4) Perform calculations, analyse the results obtained, understand causes and make proposals for avoiding problems or enhancing the situation – test with calculations, an examination, calculations in classes.
5) Choose the most appropriate kind of financing a project and assess the efficiency of a financial investment in comparison with other projects or investments, analyse and assess the financial and economic performance of projects as well as draw up a project budget – test with calculations, independent work, discussions in classes.
6) Independently assess the performance of another individual and produce a written report on it (whether the project cash flow, practical solutions as well as proposals are consistent with the expected results) – independent work.
7) Responsibly plan the completion of the assignments given. Select information, present the calculations performed and proposals made – independent work.

8) Apply the knowledge acquired, successfully develop projects, apply modern project financial management methods and maximally effectively plan and manage project finances, come up with proposals for decision-making based on the economic situation (change in inflation, financial risk under the circumstances of uncertainty) – practical assignments, tests, an examination.

Course Content(Calendar)

1. Management of the firm's investment activity. (lecture 1 h, practical classes 1 h)
2. Breakdown of real investment. (lecture 0.5 h)
3. Types of investors by attitudes to risk. (lecture 0.5 h, practical classes 1 h)
4. The nature of the concept of an investment project. Different methods for classifying investment projects. (lecture 0.5 h, practical classes 1 h)
5. Criteria for evaluating investment projects. (lecture 0.5 h, practical classes 1 h)
6. The most commonly used methods for evaluating investment projects are. (lecture 1 h, practical classes 6 h)
7. Assessment of projects in inflation and risk conditions. (lecture 1 h, practical classes 3 h)
8. Capital investment budgeting techniques and optimisation. (lecture 1 h, practical classes 1 h)
9. Analysis of the sensitivity of the project. (lecture 1 h, practical classes 2 h)
10. Institutional structure, types and terms of payments for the management of financial funds. (lecture 0.5 h)
11. Sources of financing for the project. (lecture 1 h, practical classes 2 h)
12. Analysis of the expenditure and benefits of the project. (lecture 1 h, practical classes 2 h)
13. Project financial flow planning and control. (lecture 0.5 h, practical classes 2 h)
14. Amendments to the financial contract, procedures for their performance. (lecture 1 h)
15. Financial risks in projects. (lecture 0.5 h, practical classes 1 h)

16

Requirements for awarding credit points

Successfully completed 3 tests: Test 1 - Theoretical aspects of project financing and assessment. Cash flow discounting and the use of project assessment indicators for determining the efficiency of a project (15%). Test 2 - Project efficiency indicators. NPV, DPP, IRR, ARR. Ranking of the results assessed by project assessment methods (15%). Test 3 – Project efficiency indicators under the circumstances of high inflation and uncertainty and sensibility analysis (15%).
Presentation of a report on an individual study - Analysis and presentation of industry or enterprise financing models (15%).
Examination (written) (40%).

Description of the organization and tasks of students’ independent work

Learning and strengthening the theory material by solving tasks and tests. Preparing for tests. Presentation of a report on an individual study - Analysis and presentation of industry or enterprise financing models.

Criteria for Evaluating Learning Outcomes

Test, examination and presentation with mark – average score in balls.
(10% are equal to one point on a 10-point marking scale)

Compulsory reading

1. Gatti S. Project Finance in Theory and Practice: Designing, Structuring, and Financing Private and Public Projects. Elsiever, 2013. 464 p. ISBN 9780123919465 http://books.google.com
2. Finnerty J. D. Project Financing: Asset-Based Financial Engineering. Third ed., Wiley, 2013. ISBN 13: 9781118394106 http://books.google.com
3. Yescombe E.R. Principles of Project Finance. Second ed. Wiley, 2013. 559 p. ISBN: 978-0-12-391058-5 http://books.google.com
4. Bodmer Edward Corporate and Project Finance Modeling. Wiley, 2014. ISBN 13: 9781118854365 http://books.google.com
5. Gupta Ambrish Project Appraisal and Financing. 2017. (5. un 6.nodaļa.ISBN 978-81-203-5275-9 http://books.google.com
6. Brigham E. F., Houston J. F. Fundamentals of Financial Management, Wiley, 2013. ISBN 13: 978-0-538-48243-1 http://books.google.com
7. Džouns R. Projektu vadības pamati. Rīga: SIA "Lietišķās informācijas dienests", 2008. 223 lpp.
8. Uzulāns J. Projektu vadība. Rīga: Jumava, 2004. 120 lpp.
9. Kozlovs V. Investīciju projektu ekonomiskais novērtējums. Rīga: 2005. 139 lpp. ISBN 9984-19-763-8

Periodicals and other sources

1. Dienas Bizness: nedēļas laikraksts: Latvijas biznesa avīze. Rīga: Diena: Dagens Industri, 2005-.ISSN 1407-2041
2. Finanšu portāls. Pieejams:http://www.financenet.lv
3. Finanšu vadības rokasgrāmata. Lietišķās informācijas dienests. Rīga.
4. International Journal of Managerial Finance. Pieejams: http://www.emeraldinsight.com/products/journals/journals.htm?id=ijmf&PHPSESSID=9c0rsst1q6f4vhln4lesbbnav0
5. Laikraksts Latvijas Vēstnesis. Latvijas Republikas oficiālais laikraksts. ISSN 1407-0391
6. Latvijas Investīciju un attīstības aģentūra. Pieejams: www.liaa.lv
7. Lauku atbalsta dienest. Pieejams:s http://www.lad.gov.lv
8. LR ekonomikas ministrija. Pieejams: http://www.em.gov.lv
9. Riska vadības rokasgrāmata. Lietišķās informācijas dienests. Rīga.
10. Finanšu ministrija. Pieejams: http://www.fm.gov.lv
11. Attīstības finanšu aģentūra „Altum”. Pieejams: http://www.altum.lv
12. Latvijas Pašvaldību savienība. Pieejams: http://www.lps.lv
13. ES fondi. Pieejams: http://www.esfondi.lv

Notes

Restricted elective course for full-time studies of the “Economic” academic master’s degree programme for the “Financial Management and Accounting” section for full-time studies

Atsauksmes