Capital Investment Policy

Description

Upon completion of this course, the student is able to use different techniques to evaluate investment projects and to apply them in practical cases. He/she is also able to interprete and critically analyze academic research concerning the different topics covered in this course. Specifically, the student is able: to critically analyze investment projects, focusing on two central questions 1) is a project economically acceptable or not? and 2) when should the project be started if it meets the criterion of economic acceptability? to determine the critical factors ('drivers') underlying these decisions and implement sensitivity analyses. to apply the various techniques in different settings (such as, e.g., in the context of mergers and acquisitions) taking into account the specificities of these investment projects. to interpret and critically analyze academic research w.r.t. the investment topics covered during the various lectures. Within the faculty’s Ethics, Responsibility, and Sustainability (ERS) objectives framework, the course aims to foster students’ ability to critically evaluate investment projects by incorporating considerations of various stakeholder interests ( complexity in ERS ), and to develop an understanding of how frictions, conflicts of interest and behavioral biases can affect financing costs and/or shape corporate investment ( ERS worldview ).