Study Guide

Learning outcomes

The student is able to
- set up a discounted cash flow analysis
- use investment criteria to determine whether or not a project is acceptable
- use scenario analysis, sensitivity analysis and risk analysis in decision making
- write an investment proposal for management
- use computer software in capital budgeting

Teaching methods

Introduction to capital budgeting theory and practices (lectures and literature reviews)
Individual Excel assignments
Team assignments using capital budgeting software (Invest for Excel)

Capital budgeting is the process of deciding whether or not to undertake an investment project. Should we start a new production line? Should we buy new machinery? Is this project profitable? Yes? No? The management needs to answer these kinds of questions and needs support in making important decisions about the future.

Location and time

The schedule can be found in Pakki. There will also be four evening (Zoom) sessions, the dates will be announced later. Besides that there will be an intensive week with international students in Laurea on May 13th- 17th.

Co-operation with working life and/or RDI

Datapartner, Cash flow modelling

Important dates

Capital Budgeting students do individual assignments and also make a team assignment in international teams. Team projects are presented on the study unit's intensive week (13.5.-17.5) when international students come to Finland. Presentations are on Thursday May 16th.

Forms of internationality

Made in co-operation with other Universities of Applied Sciences from Germany, Poland and Hungary.

Further information for students

This study unit, which is done under an ERASMUS BIP - Program is also recommended for students in the Finnish programmes.

Grading scale

H-5

Evaluation criteria, satisfactory (1-2)

Englanniksi
PROFESSIONAL KNOWLEDGE BASIS, INFORMATION SEARCHING AND REPORTING
– use professional concepts in a consistent manner and demonstrate his/her familiarity with the knowledge basis
– report and communicate in a professional manner

PROFESSIONAL PRACTICE AND WORKPLACE DEVELOPMENT
– act independently taking into account the operating environment
– take responsibility for interaction with customers and/or co-operation partners and for responding to their needs

TEAMWORK SKILLS, LEADERSHIP AND RESPONSIBILITY
– describe the significance of his/her actions for successful co-operation
– describe his/her competence in relation to the learning outcomes

Evaluation criteria, good (3-4)

PROFESSIONAL KNOWLEDGE BASIS, INFORMATION SEARCHING AND REPORTING
– critically evaluate information and justify their actions with science-based knowledge

PROFESSIONAL PRACTICE AND WORKPLACE DEVELOPMENT
– propose creative solutions at work
– promote professional co-operation and enhance customer and partner relationships

TEAMWORK SKILLS, LEADERSHIP AND RESPONSIBILITY
– act in a manner that promotes the team’s entrepreneurial and responsible approach to work
- describe the development of his/her competence in relation to the learning outcomes

Evaluation criteria, excellent (5)

PROFESSIONAL KNOWLEDGE BASIS, INFORMATION SEARCHING AND REPORTING
– analyse the acquired information, draw conclusions and combine theoretical knowledge with experiential knowledge

PROFESSIONAL PRACTICE AND WORKPLACE DEVELOPMENT
– evaluate the applicability of produced knowledge, skill or idea to other contexts as well as their impact
– anticipate needs of customers and/or co-operation partners

TEAMWORK SKILLS, LEADERSHIP AND RESPONSIBILITY
– evaluate and develop the team’s entrepreneurial and responsible approach to work
– evaluate the possibilities for utilising competence and plan his/her personal development and development of the team

Qualifications

Profitable Business 1 and 2 (or equivalent knowledge)