Learning objectives
The course aims to frame the evaluation of plans and projects in the broader context of economic, estimative and corporate finance doctrines.
An interdisciplinary methodological vision is proposed that aims to make the student autonomous in the evaluation process, developing the critical attitude to the choice of the optimal evaluation approach and application to the real evaluation contexts.
Space is given to advanced theoretical study, also with reference to in-depth texts of consolidated and frontier literature, to stimulate students' interest in innovative courses in evaluation theory.
Prerequisites
No prerequisite
Course unit content
1) Principles of economics relevant in the evaluation of plans and projects;
2) The economic accounting approach to project evaluation;
3) The financial approach to project evaluation;
4) The cost approach in the evaluation of projects;
Full programme
1) Principles of economics relevant in the evaluation of plans and projects:
- economic system
- State intervention in the economy
- market, demand, supply
- taxation
- elasticity of supply and demand
2) The economic accounting approach to project evaluation;
- analysis of revenues and costs, profit, intermediate profit margins;
- the income statement, the balance sheet, the cash flow statement in the evaluation of the projects;
- the economic approach in valuation: ratios and balance sheet margins;
- applications to investments in the real estate market;
3) The financial approach to project evaluation;
- the analysis of financial flows;
- the concept of capitalization and discounting;
- the financial evaluation indices: NPV, IRR, Pay Back;
- the choice of the discount rate;
- asset side and equity side approach to valuation;
- recent developments of the evaluation indices;
- project finance operations;
- the financial sustainability of the projects;
- the ICR and the DSCR;
4) The cost approach in the evaluation of projects;
- the short-term cost;
- the long-term cost: the life cycle cost approach;
5) Valuation of priceless goods:
- public goods, mixed goods, private goods;
- development theories, market failures, externalities;
- indirect evaluation approaches;
- direct evaluation approaches.
Bibliography
1) Iotti M. (2016) La valutazione degli investimenti industriali, Franco Angeli, Milano.
2) Selected paper.
Teaching methods
Methodological lessons;
Lessons with application of cases and examples;
Class discussion;
Analysis of literature references
Assessment methods and criteria
The exam will take place orally and with an evaluation of the work done and presented by the students as part of LABORATORIO DI PIANIFICAZIONE URBANISTICA PER LA CITTA' SOSTENIBILE
Other information
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2030 agenda goals for sustainable development
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