COURSE UNIT TITLE

: PROJECT APPRAISAL

DEGREE PROGRAMMES

Description of Individual Course Units

Course Unit Code Course Unit Title Type Of Course D U L ECTS
IKT 4008 PROJECT APPRAISAL COMPULSORY 3 0 0 6

Offered By

Economics

Level of Course Unit

First Cycle Programmes (Bachelor's Degree)

Course Coordinator

PROFESSOR DOCTOR MERT URAL

Offered to

Economics
Economics (Evening)

Course Objective

To explain how to evaluate projects within the framework of the time value of money and micro and macro scale project appraisal techniques and to gain the equipment to work in financial institutions as an administrator in the future.

Learning Outcomes of the Course Unit

1   To explain the concept and the classification of investments.
2   To explain the basic concepts of appraisal techniques.
3   To distinguish the difference between the project appraisal techniques.
4   To decide by analyzing the micro-scale projects in the sample.
5   To calculate the cost of capital for different financial resources.
6   To distinguish the difference between the project finance techniques.
7   To evaluate the macro-scale projects in the sample.

Mode of Delivery

Face -to- Face

Prerequisites and Co-requisites

None

Recomended Optional Programme Components

None

Course Contents

Week Subject Description
1 - Types of Manufacturing Investments - State Relief and Investment Incentives in Turkey - Distribution according to Industry, Region and Types of Investment Incentives in Turkey
2 - Pre and Post Stages of Investment - Terminology of the Course and Basic Concepts of Appraisal Techniques, - Classification of Project Appraisal Techniques, - Micro-Scale Techniques: Static Evaluation Techniques - Profit Planning and Cost Analysis,
3 - Different Strategies and Break-Even Analysis, - Multi-commodity Solutions
4 - Dynamic Break-Even Analysis: The Effects of Partial and Within Changes, - Importance of Systematic Risk and Sensitivity Analysis for Breakeven
5 - Payback Period-PP Calculation for Projects which have Regular or Irregular Cash Inflows - PP Decisions for the Dependent and Independent Projects - Average Rate of Return Calculation and Financial Decisions - Time Value of Money and Annuities - IRR calculations and financial decisions for projects
6 - Discounted Payback Period-DPP (PP2) calculations, - NPV calculations and financial decisions for projects, - Calculation methods of Salvage Value, - Using NPV for Replacement Investments, - Incentive effects on manufacturing Investments: Decisions based on IRR and NPV.
7 - Problems at the positive - negative cash-flow series and MIRR solutions, - MIRR calculations and MIRR decisions for projects,. - Fisher's ıntersection in investments and solution methods, - Techniques for elimination of inflationary effects on investment projects.
8 Midterm Exam
9 Midterm Exam
10 - The use of the NPV for evaluation of the processes of additional investments for expansion capacity, - The NPV method at the evaluation of different economic life and joint impossible projects, - Evaluation of dependent projects, - Evaluation of projects which have different discount rates, - Evaluation of non-periodic cash flows projects: XIRR and XNPV techniques.
11 - PI calculations and financial decisions, - Financial decisions according to the method of Annually Equivalent Cost - AEC, Present value of Annually Equivalent Cost - PVAC and Present value of Annually Equivalent Average Cost - PVAVC, - Annually Equivalent Worth - AEW method of evaluation of projects in different economic life, - Project evaluation under uncertainty (risk)
12 - Short, medium and long-term resources can be used to project finance - Calculation of the cost of Short-term bank loans (base, nominal and effective cost distinction), - Calculation of the cost of medium and long-term resources: Payback in equal and unequal installments, - Special cases for medium and long-term resources (bank commissions - Letters of guarantee - the after-tax cost).
13 - Bond and equity issuances, - WACC calculation and financial decisions, - Project capital structure decisions.
14 - The importance of the project appraisal in terms of the national economy, - The Value-added Generating Power Method, - Capital - Output Method, - Employment Generating Power, - Contribution to Balance of Payments: Analysis of foreign exchange earning / saving effects, - Contribution to Public Finance.

Recomended or Required Reading

1. Adem ANBAR ve Değer ALPER, Yatırım Projeleri Analizi, Ekin Yayınevi, Bursa 2009.
2. Öcal USTA, Yatırım Projelerinin Değerlendirilmesi, Üçüncü Baskı, Anadolu Matbaası, Izmir 2000.
3. Öztin AKGÜÇ, Finansal Yönetim, 7.Baskı, Muhasebe Enstitüsü Eğitim ve Araştırma Vakfı, Yayın No:17, Istanbul 1998.
4. Osman OKKA, Mühendislik Ekonomisine Giriş I, Nobel Yayın Dağıtım, Ankara 2006.
5. Osman OKKA, Mühendislik Ekonomisine Giriş II, Nobel Yayın Dağıtım, Ankara 2006.
6. Osman OKKA, Mühendislik Ekonomisi Çözümlü Problemler, Nobel Yayın Dağıtım, Ankara 2006.
7. Senih AŞAN ve Müge IŞERI, Yatırım Bütçelemesi ve Yatırım Kararları, Istanbul Kültür Üniversitesi Yayınları, No:4, Istanbul 1998.
8. Türkiye Kalkınma Bankası, Yatırım Projelerinin Değerlendirilmesi I, Türkiye Kalkınma Bankası Yayınları, Ankara 1991.
9. Türkiye Kalkınma Bankası, Yatırım Projelerinin Değerlendirilmesi II, Türkiye Kalkınma Bankası Yayınları, Ankara 1991.

Planned Learning Activities and Teaching Methods

Subjects verbally describes and also many examples to be solved for each topic. All topics covered in this course are also analyzed by using Excel program. Model calculations simultaneously updated within the projected data changes, and the calculation result differences are interpreted. Assessment of learning outcomes of the course with open book exam technique is used.

Assessment Methods

SORTING NUMBER SHORT CODE LONG CODE FORMULA
1 MTE MIDTERM EXAM
2 MTEG MIDTERM GRADE MTEG * 1
3 FIN FINAL EXAM
4 FCGR FINAL COURSE GRADE MTEG * 0.40 + FIN * 0.60
5 RST RESIT
6 FCGR FINAL COURSE GRADE (RESIT) MTEG * 0.40 + RST * 0.60


*** Resit Exam is Not Administered in Institutions Where Resit is not Applicable.

Further Notes About Assessment Methods

None

Assessment Criteria

To be announced.

Language of Instruction

Turkish

Course Policies and Rules

To be announced.

Contact Details for the Lecturer(s)

ilkin.baray@deu.edu.tr
mert.ural@deu.edu.tr

Office Hours

To be announced.

Work Placement(s)

None

Workload Calculation

Activities Number Time (hours) Total Work Load (hours)
Lectures 12 3 36
Preparations before/after weekly lectures 12 3 36
Preparation for midterm exam 1 30 30
Preparation for final exam 1 45 45
Midterm 1 2 2
Final 1 2 2
TOTAL WORKLOAD (hours) 151

Contribution of Learning Outcomes to Programme Outcomes

PO/LOPO.1PO.2PO.3PO.4PO.5PO.6PO.7PO.8PO.9
LO.111
LO.211
LO.311
LO.411
LO.51
LO.61
LO.71

CONTACT INFORMATION
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Phone: +90(232) 412 12 12 - Fax: +90 (232) 464 81 35

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