[major=BBA_CF | course_id=BKG303 | syllabus_id=12402 | semester=8 | combo=core | title=Investment Project Appraisal]
Course ID: BKG303
Title EN: Investment Project Appraisal
Title VI: Thẩm định dự án đầu tư
Credits: 3.0
Prerequisites: FIN202
Description: This course introduces students to the principles and techniques of investment project appraisal in both private and public sectors. It covers the critical aspects of evaluating investment opportunities, including financial modeling, risk assessment, cost-benefit analysis, and the impact of financing and taxation on investment decisions. The course aims to equip students with the analytical tools necessary to assess the viability of investment projects and make informed financial decisions.

Learning Objectives
Upon successful completion of this course, students will be able to:
(i) Understand and apply the fundamental principles of investment appraisal.
(ii) Conduct financial analyses using discounted cash flow (DCF) techniques.
(iii) Evaluate the impact of risk and uncertainty on investment decisions.
(iv) Compare and contrast different investment appraisal methods.
(v)Prepare comprehensive investment appraisal reports.
Student tasks: - Class attendance is strongly encouraged. Attend at least 80% of class hours in order to be accepted to the final examination
- Actively participate in class activities
- Fulfill tasks given by the instructor after class
- Use laptop in class only for learning purposes
- Read the textbook in advance
- Access the course website (http://flm.fpt.edu.vn) for up-to-date information and material of the course, for online support from teachers and other students and for practicing and assessment.
Tools: - Internet
- Laptop
- Microsoft Excel or equivalent spreadsheet software
Course type: traditional
Decision: 04/QĐ-ĐHFPT dated 01/03/2025
Approved date: 2025-01-03
CLO1: Explain the fundamental concepts and principles underlying the appraisal of investment projects, including the time value of money, cash flow estimation, and the cost of capital.
[1] category=Class Participation and Preparation; type=on-going; weight=10.0; duration=; question_type=; grading_guide=; completion_criteria=; clos=>0
[2] category=Essay test; type=on-going; weight=15.0; duration=In class (45-60 minutes); question_type=CLO1, CLO2, CLO3, CLO4, CLO5; grading_guide=All chapters; completion_criteria=; clos=>0
[3] category=Group Project and Presentation; type=on-going; weight=20.0; duration=Presentation in class and report submission;; question_type=CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; grading_guide=Thinking creatively, making decisions, solving problems,Personal qualities: Individual responsibility, self-esteem, sociability, self-management, and integrity.; completion_criteria=; clos=>0
[4] category=Individual Assignment; type=on-going; weight=10.0; duration=In class (30-40 minutes); question_type=CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; grading_guide=Thinking creatively, making decisions, solving problems,Personal qualities: Individual responsibility, self-esteem, sociability, self-management, and integrity.; completion_criteria=; clos=>0
[5] category=Mid-term test (MT); type=on-going; weight=15.0; duration=In class (45-60 minutes); question_type=CLO1, CLO2, CLO3, CLO4, CLO5; grading_guide=Chapters 2,4,5,7,8,10,11; completion_criteria=; clos=>0
[6] category=Final exam; type=Final exam; weight=30.0; duration=60 minutes; question_type=CLO1, CLO2, CLO3, CLO4, CLO5; grading_guide=Selected number of MC questions on each of the following chapters, only including 2, 4, 5, 6, 7, 10, 11, 12, 13, 15, 18, 19. Other chapters, which are not mentions, are not tested.; completion_criteria=; clos=4
[1] desc=Capital Budgeting Valuation: Financial Analysis for Today's Investment Projects; author=H. Kent Baker; Philip English; publisher=Wiley; edition=; isbn=978-1-118-04456-8; main=True; online=True; note=Wiley - Vital Source
[2] desc=Fundamentals of Corporate Finance; author=Robert Parrino, Thomas Bates, Stuart L. Gillan, David S. Kidwell; publisher=Wiley; edition=5th, International Adaptation; isbn=978-1-119-79542-1; main=; online=True; note=Wiley - Vital Source
Session 1: Course Introduction
Topic: Offline; Teaching type: ; LO: I
ITU: Syllabus, Book, Slides
Materials: BKG303
Download: Self review

Session 2: Chap 1: Capital Budeting: An Overview
1.1 Capital Budgeting Process
1.2 Financial Objective of the Firm
1.3 Capital Investment Choice
Topic: Offline; Teaching type: CLO1; LO: T, U
ITU: Book, Slides
Materials: BKG303
Download: Self review, additional reading following chapter

Session 3: Chap 1: Capital Budeting: An Overview (cont')
1.1 Capital Budgeting Process
1.2 Financial Objective of the Firm
1.3 Capital Investment Choice
Topic: Offline; Teaching type: CLO1; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 4: PART I - Foundation and Key Concepts
Chap 2 Corporate Strategy and Investment Decisions
2.1 THE IMPORTANCE OF STRATEGY FOR INVESTMENT DECISIONS
2.2 KEY CONCEPTS AND IDEAS IN STRATEGY
Topic: Offline; Teaching type: CLO1; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter
CLO2: Apply discounted cash flow (DCF) techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and Adjusted Net Present Value (ANPV) to analyze and evaluate investment decisions.
Session 1: Chap 2 Corporate Strategy and Investment Decisions
2.3 CORPORATE STRATEGY, INVESTMENT, AND PERFORMANCE: SOME EVIDENCE
Topic: Offline; Teaching type: CLO1; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 2: (Optional) Chap 3 Corporate Governance and Investment Decisions
3.1 THE CAUSES OF INVESTMENT DISTORTIONS
3.2 IMPACT OF CORPORATE GOVERNANCE ON INVESTMENT DISTORTIONS
Topic: Offline; Teaching type: CLO1; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 3: PART II - Capital Investment Choice
Chap 4 Measuring Investment Value: Free Cash Flow, Net Present Value, and Economic Value Added
4.1 NPV AND IRR
4.2 CASH FLOWS
Topic: Offline; Teaching type: CLO2, CLO5; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 4: Chap 4 Measuring Investment Value: Free Cash Flow, Net Present Value, and Economic Value Added
4.3 TAX SAVINGS, DISCOUNT RATES, AND THE FUNDING MIX OF CAPITAL
4.4 DYNAMIC NPV
4.5 ECONOMIC VALUE ADDED
Topic: Offline; Teaching type: CLO2, CLO5; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter
CLO3: Identify and evaluate the sources of risk and uncertainty in investment projects, employing methods such as sensitivity analysis, scenario analysis, and Monte Carlo simulation to assess their impact on project viability.
Session 1: Practice
Group/Individual Assignment Release
Topic: Offline; Teaching type: CLO2, CLO5; LO: T, U
ITU: Book, Slides
Download: Do homework, self review, additional reading following chapter
Read Assignment Instruction

Session 2: Chap 5 Alternative Methods of Evaluating Capital Investments
5.1 AN AGENCY PROBLEM BETWEEN MANAGERS AND SHAREHOLDERS
5.2 THE PAYBACK PERIOD AND ITS VARIATIONS
5.3 IRR: SCALE AND TIMING EFFECTS
Topic: Offline; Teaching type: CLO2, CLO4; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 3: Chap 5 Alternative Methods of Evaluating Capital Investments
5.4 NPV AND IRR: MUTUALLY EXCLUSIVE PROJECTS
5.5 REINVESTMENT RATES AND MULTIPLE IRRs
5.6 PROFITABILITY INDEX
Topic: Offline; Teaching type: CLO2, CLO4; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 4: Chap 6 Capital Rationing for Capital Budgeting
6.1 DEFINITION OF CAPITAL RATIONING FOR CAPITAL BUDGETING
6.2 HOW DOES CAPITAL RATIONING WORK TO IMPROVE CAPITAL BUDGETING?
6.3 CONDITIONS FOR SUCCESSFUL CAPITAL RATIONING
6.4 NEGATIVE SIDE EFFECTS OF COMPETITIVE CAPITAL RATIONING
Topic: Offline; Teaching type: CLO2, CLO4; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter
CLO4: Compare and contrast various investment appraisal methods, including payback period, discounted payback period, and Accounting Rate of Return (ARR), and understand their limitations and applications.
Session 1: Chap 7 Analyzing Foreign Investment
7.1 FINANCIAL VALUATION PROCESS
7.2 FINANCIAL MODELING BASICS
Topic: Offline; Teaching type: CLO1, CLO2; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 2: Chap 7 Analyzing Foreign Investment
7.3 FINANCIAL MODELING COMPLICATIONS
Topic: Offline; Teaching type: CLO1, CLO2; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 3: (Optional) Chap 8: Postcompletion Auditing of Capital Investments
Topic: Offline; Teaching type: CLO1, CLO2; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 4: Group/Individual Assignment Release
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: 
Download: Create groups
Read assignment instruction
CLO5: Analyze the effects of financing and taxation on investment decisions, understanding the implications of different financing structures and tax regimes on the appraisal of investment projects.
Session 1: Practice
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Slides
Download: https://flm.fpt.edu.vn/gui/role/student/Discuss solutions of provided exercises/case study/topic for discussion

Session 2: Practice
Topic: Offline; Teaching type: ; LO: U
ITU: Book, Slides
Download: https://flm.fpt.edu.vn/gui/role/student/Discuss solutions of provided exercises/case study/topic for discussion

Session 3: PART III - Project Cash Flows and Inflation
Chap 10 Estimating Project Cash Flows
10.2 RELEVANT CASH FLOWS
10.3 FORECAST OF NET CASH FLOWS
Topic: Offline; Teaching type: CLO1; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 4: Chap 10 Estimating Project Cash Flows
10.2 RELEVANT CASH FLOWS
10.3 FORECAST OF NET CASH FLOWSƯ
Topic: Offline; Teaching type: CLO1; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter
CLO6: Demonstrate the ability to apply investment appraisal techniques to real-world scenarios, using case studies and project work to evaluate actual investment projects and make informed recommendations.
Session 1: Practice
Topic: Offline; Teaching type: CLO1; LO: U
ITU: Book, Slides
Download: https://flm.fpt.edu.vn/gui/role/student/Discuss solutions of provided exercises/case study/topic for discussion

Session 2: Chap 11 Capital Budgeting and Inflation
11.1 REASONS TO JUSTIFY A REAL OR CONSTANT PRICES APPROACH
11.2 IMPACTS OF INFLATION ON THE FINANCIALS: AN EXAMPLE
Topic: Offline; Teaching type: CLO1, CLO2; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 3: Chap 11 Capital Budgeting and Inflation
11.1 REASONS TO JUSTIFY A REAL OR CONSTANT PRICES APPROACH
11.2 IMPACTS OF INFLATION ON THE FINANCIALS: AN EXAMPLE
Topic: Offline; Teaching type: CLO1, CLO2; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 4: Practice
Topic: Offline; Teaching type: CLO1, CLO2; LO: U
ITU: Book, Slides
Download: https://flm.fpt.edu.vn/gui/role/student/Discuss solutions of provided exercises/case study/topic for discussion
CLO7: Practice ability to work as part of an effective team to prepare report and presentation
Session 1: Midterm Test
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 2: Midterm Test
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 3: Assignment Instruction
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: Book, Slides
Download: Report assignment progress
Prepare questions relating to assignment for discussion

Session 4: PART IV - Risk and Investment Choice
Chap 12 Basic Risk Adjustment Techniques in Capital Budgeting
12.1 DECISION-MAKING TECHNIQUES FOR RISKY CAPITAL BUDGETING PROJECTS
12.2 THE JUDGMENT APPROACH
12.3 ADJUSTING THE PAYBACK PERIOD
Topic: Offline; Teaching type: CLO3, CLO4; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter
Session 1: Chap 12 Basic Risk Adjustment Techniques in Capital Budgeting
12.4 THE CERTAINTY EQUIVALENT METHOD
12.5 THE RISK-ADJUSTED DISCOUNT RATE METHOD
12.6 COMPARING THE CE AND RADR METHODS
Topic: Offline; Teaching type: CLO3, CLO4; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 2: Practice
Topic: Offline; Teaching type: CLO3, CLO4; LO: U
ITU: Book, Slides
Download: https://flm.fpt.edu.vn/gui/role/student/Discuss solutions of provided exercises/case study/topic for discussion

Session 3: Chap 13 Capital Budgeting with political/country risk
13.1 METHODS AND TECHNIQUES OF POLITICAL/COUNTRY RISK ANALYSIS
13.2 INCORPORATING POLITICAL RISK IN THE CAPITAL BUDGETING DECISION
Topic: Offline; Teaching type: CLO3; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 4: Chap 14 Risk management in project finance
14.1 PROJECT FINANCE AS A NEXUS OF CONTRACTS
14.2 RISK MANAGEMENT IN PROJECT FINANCE
14.3 CAPITAL BUDGETING IN PROJECT FINANCE
Topic: Offline; Teaching type: CLO3; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter
Session 1: Practice
Topic: Offline; Teaching type: CLO3; LO: U
ITU: Book, Slides
Download: Do homework, self review, additional reading following chapter

Session 2: Chap 15 Risk simulation concepts and methods
15.1 INITIAL STATIC MODEL
15.2 INITIAL SIMULATION AND ANALYSIS
15.3 SIMULATION WITH CORRELATED INPUTS
Topic: Offline; Teaching type: CLO3; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 3: Chap 15 Risk simulation concepts and methods
15.4 COMPACT PRO FORMA MODELS
Topic: Offline; Teaching type: CLO3; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 4: Practice
Topic: Offline; Teaching type: CLO3; LO: U
ITU: Book, Slides
Download: https://flm.fpt.edu.vn/gui/role/student/Discuss solutions of provided exercises/case study/topic for discussion
Session 1: PART VI - Estimating the Project Cost of Capital
Chap 18 Cost of capital: An introduction
18.1 COST OF CAPITAL
Topic: Offline; Teaching type: CLO1, CLO5; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 2: Chap 18 Cost of capital: An introduction
18.2 COMPREHENSIVE EXAMPLE OF ESTIMATING THE WACC
Topic: Offline; Teaching type: CLO1, CLO5; LO: T, U
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 3: Practice
Topic: Offline; Teaching type: CLO1, CLO5; LO: U
ITU: Book, Slides
Download: https://flm.fpt.edu.vn/gui/role/student/Discuss solutions of provided exercises/case study/topic for discussion

Session 4: Chap 19 Using the Capital Asset Pricing Model and Arbitrage Pricing Theory in Capital Budgeting
19.1 THE CAPITAL ASSET PRICING MODEL
Topic: Offline; Teaching type: CLO1, CLO3, CLO5; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter
Session 1: Chap 19 Using the Capital Asset Pricing Model and Arbitrage Pricing Theory in Capital Budgeting
19.2 THE ARBITRAGE PRICING THEORY
Topic: Offline; Teaching type: CLO1, CLO3, CLO5; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 2: Practice
Topic: Offline; Teaching type: CLO1, CLO3, CLO5; LO: U
ITU: 
Download: https://flm.fpt.edu.vn/gui/role/student/Discuss solutions of provided exercises/case study/topic for discussion

Session 3: Practice
Topic: Offline; Teaching type: CLO4; LO: U
ITU: Book, Slides
Download: https://flm.fpt.edu.vn/gui/role/student/Discuss solutions of provided exercises/case study/topic for discussion

Session 4: Practice
Topic: Offline; Teaching type: CLO4; LO: U
ITU: Book, Slides
Download: https://flm.fpt.edu.vn/gui/role/student/Discuss solutions of provided exercises/case study/topic for discussion
Session 1: Assignment Submission
Topic: Offline; Teaching type: CLO4; LO: U
ITU: Book, Slides
Download: Submiss assignment on time and align with instruction

Session 2: (Optional)
Part V Real Options
Part VII Special Topics
Topic: Offline; Teaching type: CLO4; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 3: (Optional)
Part V Real Options
Part VII Special Topics
Topic: Offline; Teaching type: CLO4; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter

Session 4: (Optional)
Part V Real Options
Part VII Special Topics
Topic: Offline; Teaching type: CLO4; LO: I, T
ITU: Book, Slides
Download: Self review, additional reading following chapter
Session 1: Group Presentation
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 2: Group Presentation
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 3: Group Presentation
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 4: Group Presentation
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: Book, Slides
Download: Review all covered chapters
Session 1: Group Presentation
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 2: Group Presentation
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 3: Course Review
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 4: Course Review
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: Book, Slides
Download: Review all covered chapters
Session 1: Course Review
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5, CLO6, CLO7; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 2: Essay Test
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 3: Essay Test
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5; LO: U
ITU: Book, Slides
Download: Review all covered chapters

Session 4: Essay Test - Review
Topic: Offline; Teaching type: CLO1, CLO2, CLO3, CLO4, CLO5; LO: U
ITU: Book, Slides
Download: Review all covered chapters