Ateneo - UPO

The course describes the theory and practice of decision making processes in capital budgeting, ie in the field of industrial investment choices. In particular, the course compares different methodologies used in investment decisions. A particular focus will then be devoted to the appropriate calibration of the models based on the inherent risk of the projects being analyzed.

Berk J., DeMarzo P., Venanzi D. (2025) "Finanza Aziendale. Sesta edizione", Pearson, cap. 3, 4, 5, 7, 8, 10, 11, 18. Slides related to each chapter and exercises on Moodle/DIR platform For the students attending the lessons: slides and exercises published on the moodle/DIR platform, integrated with the notes taken during the lessons, represent the minimal requirement for the exam; the text book is suggested for deeping the subject. The students that will not attend most of the lessons are required to refer to the text book and to the materials published on the Moodle/DIR platform. For the students that must take the 6 credit exam, the content of chapter 18 is excluded from the program.

The course aims at providing students with the tools they need to understand the issues related to some aspects of industrial investment decisions, while delineating a method of structuring analysis functional to the problem solving.
The training course requires students to develop:
- knowledge and understanding of models for strategic and operational analysis in support of industrial investment decision-making;
- the ability to apply the proposed models in specific problems of managerial and entrepreneurial decisions;
- the ability to interpret and evaluate the effects of managerial choices on value creation for the company and its shareholders.

No prerequisite

Frontal lessons and exercises, oriented to developing a "problem-solving" approach.

Students with physical disabilities, Learning Disabilities or Special Education Needs can request specific services and tools via reference office consulting the University webpage: https://www.uniupo.it/en/services/services-students-physical-or-learning-disabilities. Students with disabilities, learning disabilities or special education needs, once they have contacted the University Staff, can refer to the tutor in charge of the course to define the examination modalities, concerning academic aspects.

The exam is written. It also allows getting the praise (30/30 cum laude). There is no oral exam or oral integration of the written grade. The written exam consists of two parts: a part aimed at Knowledge & Understanding (maximum of 21 points, with 14 multiple choice questions of 1.5 points each and penalty of 0.5 points for wrong answer) and a part aimed at Applying Knowledge (maximum 12 points, with 3 open-ended questions).
The exam can be taken a maximum of three times during the calendar year, whitout skip of attempt in case of insufficient result in the previous exam. There is no possibility of withdrawal.

- Arbitrage and financial decisions
- The value of the money over time
- Interest rates
- The criteria for capital budgeting
- The relevant cash flows of the project
- Analysis of the investment project
- The pricing of risk on the capital markets
- The Capital Asset Pricing Model (CAPM) to estimate the cost of capital
- The impact of the financial structure
- Capital budgeting of the indebted company

- Knowledge and understanding:
at the end of the course, the student will have to acquire knowledge about the financial principles of valuation of industrial investments.
- Ability to apply knowledge and understanding: at the end of the course, the student will have acquired the ability to implement industrial investment assessment models by adopting a "problem solving" approach, by selecting appropriate variables for the purpose of decision making.
- Cross-skills:
Judgment autonomy: the student will have acquired the ability to collect and re-elaborate information useful to the investment selection process;
Communicative Skills: The student will have acquired the ability to communicate and interact with his / her interlocutors using a suitable financial language;
Learning Skills: The student will have cognitive and analytical tools that will enable him/her to deal with decision-making problems autonomously