ESCUELA SUPERIOR POLITÉCNICA DEL LITORAL FACULTAD DE CIENCIAS SOCIALES Y HUMANÍSTICAS (FCSH) COURSE SYLLABUS 1. CODE AND NUMBER OF CREDITS: CODE NUMBER OF CREDITS Theoretical: 4 Practical: 0 2. COURSE DESCRIPTION: In this course the student will develop projects from initial idea, doing market research, which includes analysis of demand, supply, pricing and marketing, the study, which contains the balance of physical work, machinery and equipment, determining the size and location of the project, the organizational study and financial study, including cost estimates, working capital, salvage value, cash flow. And evaluate the project through the criteria of NPV, IRR, Payback and analysis of risk and uncertainty. This chair is important for the formation of highly competitive professional with ability to solve problems, understand and use tools to develop and evaluate investment projects that are viable over time. This course solves the puzzle of administration and finance, because it takes what you learned in market research, business administration, engineering economics and finance matters in order to successfully complete the course. 3. PRE-REQUISITES AND CO-REQUISITES: PRE-REQUISITES EC-EGE / IN-ICE / IN-INI: (ICHE04820) FINANCE III (ICHE02725) OPERATIONS MANAGEMENT I CO-REQUISITES IN-MCV: (ICHE02758) ANALYSIS OF MARKET RESEARCH (ICHE02006) FINANCE II 4. CORE TET AND OTHER REQUIRED REFERENCES FOR THE TEACHING OF THE COURSE: CORE TET 1. SAPAG Nassir y SAPAG Reinaldo, Preparation and Evaluation of Projects, 4th edition, 2000, Editorial McGraw-Hill. REFERENCES 1. BACA Urbina Gabriel, Projecct evaluation 4th ed., 2001, Editorial McGraw-Hill. 2. FINNERTY John D., Project Financing, 1998, Editorial Prentice Hall. 5. COURSE LEARNING OUTCOMES: At the end of the course, the student will be able to: 1. Develop an investment project from idea to the final document in order to determine its economic feasibility. 2. Knowing in detail the formulation and evaluation of investment projects. 3. Understanding and applying quantitative and qualitative techniques of prediction in the study of investment projects market. 4. Perform the appropriate organization within the administrative study investment projects. 5. Finding the optimal size and location of the project the best according to the environment in which it will be immersed. 6. Understand how to build and evaluate cash flow among several investment alternatives of projects considered conditions of risk and uncertainty. 6. COURSE PROGRAM: 1. INTRODUCTION (2 HOURS) 1.1. The Project Evaluation. 1.2. Project Cycle. 1.3. Formation of Working Groups to develop the project along the course. 2. THE PROCESS OF PREPARATION AND EVALUATION OF PROJECTS. (2 HOURS) 2.1. The study of the project and process. 2.2. The technical study of the project. IG1003-3 Page 1 of 5 COURSE SYLLABUS
2.3. Market research. 2.4. The organizational and administrative study. 2.5. The financial. 2.6. The environmental impact study. 3. MARKET ECONOMIC STRUCTURE. (2 HOURS) 3.1. Market Structure. 3.2. Demand for a product. 3.3. Types of Goods. 3.4. The Offer. 4. MARKET STUDY. (2 HOURS) 4.1. Market Structure's Studio. 4.2. Market Study Steps. 4.3. Definition of Good or Service. 4.4. Analysis of Demand and Supply. 4.5. Analysis of Prices. 4.6. Product Marketing. 4.7. Distribution Channels and Nature. 4.8. Market Study Conclusions. 5. MARKET PROJECTION TECHNIQUES. (6 HOURS) 5.1. Qualitative Forecasting Techniques. 5.1.1. The Delphi Method. 5.1.2. Prediction Technology. 5.1.3. Marketing research. 5.2. Prediction Quantitative Techniques. 5.2.1. Causal Models. 5.2.1.1. Simple Linear Regression. 5.2.1.2. Multiple Linear Regressions. 5.2.2. Time Series Models. 5.2.2.1. The Moving Average Method. 5.2.2.2. The extrapolation method Historical Trend. 5.2.2.3. The Exponential Tuning Method. 6. COST ESTIMATE. (4 HOURS) 6.1. Differential costs. 6.2. Future costs, buried. 6.3. Production costs. 6.4. Volume Cost Utility Analysis. 6.5. Cost Estimation Techniques. 6.6. Combined Factors. 6.7. Exponential Factor. 6.8. Simple Regression. 7. TECHNICAL STUDY ECONOMIC BACKGROUND. (4 HOURS) 7.1. Scope of Engineering Study. 7.2. Economic Effects of Technical Study. 7.3. Economies Of Scale. 7.4. Valuation of investments in physical infrastructure. 7.5. Investment in equipment. 7.6. Equipment Investment Calendar. 7.7. Personal balance. 8. DETERMINING THE SIZE. (4 HOURS) 8.1. Factors that determine the size of a project. 8.2. The optimization of the size. 8.3. The size of a project with growing market. 8.4. The size of a project with constant demand. 9. LOCATION STUDY. (2 HOURS) 9.1. Location Factors. 9.2. Methods for Evaluation Factors Unquantifiable. 9.3. Qualitative Method for Points. 9.4. The method of Brown and Gibson. 9.4.1. Calculation of the relative value of Factors Objectives (FOI). 9.4.2. Calculation of the relative value of Fsi. IG1003-3 Page 2 of 5 COURSE SYLLABUS
9.4.3. Calculating the location preference measure MPL. 9.4.4. Site Selection. 10. THE STUDY OF THE ORGANIZATION OF A PROJECT. (2 HOURS) 10.1. Economic Effects Of Organizational Variables. 10.2. Organizational Factors. 10.3. Organization Investments. 10.4. Administrative Operating Costs. 11. PROJECT INVESTMENT. (2 HOURS) 11.1. How to Determine the Working Capital Investment? 11.2. Accounting method. 11.3. Method lag period. 11.4. Maximum cumulative deficit Method. 12. PROJECT BENEFITS. (2 HOURS) 12.1. Revenue, Cost Savings and Benefits. 12.2. Income from Sale of Products or Services. 12.3. Scrap Value Accounting. 12.4. Commercial Scrap Value. 12.5. Economic Scrap Value. 12.6. Application of Three Methods. 13. CONSTRUCTION OF CASH FLOWS. (8 HOURS) 13.1. General Structure of a cash flow. 13.2. How to Build a Cash Flow to measure the Return on Equity and Affordability. 13.3. Project Financing with Debt. 13.4. Project Financing with LEASING. 14. DISCOUNT RATE. (4 HOURS) 14.1. The cost of capital. 14.2. The cost of debt. 14.3. The cost of equity or equity. 14.4. The CAPM model to determine the cost of equity. 14.5. Weighted average cost of capital. 15. PROJECT EVALUATION CRITERIA. (2 HOURS) 15.1. Net Present Value - (VAN). 15.2. Internal Rate of Return - (TIR). 15.3. Period Payback (Payback Discounted). 16. INVESTMENT ANALYSIS RISK AND UNCERTAINTY CONDITIONS. (2 HOURS) 16.1. Risk analysis by the standard deviation. 16.2. Criteria to address the risk when comparing projects. 16.3. Market Risk and the coefficient Beta ( ). 17. SENSITIVITY ANALYSIS. (2 HOURS) 17.1. Preliminary. 17.2. The one-dimensional model VAN awareness. 17.3. The multidimensional model VAN awareness. 17.4. The model sensitivity of the IRR. 17.5. Uses and abuses of the sensitivity. 18. EHIBITION OF PROJECTS (4 HOURS) 7. WORKLOAD: THEORY/PRACTICE: Number of sessions per week: 2 session Duration of each session: 2 theoretical hours Number of weeks: 14 IG1003-3 Page 3 of 5 COURSE SYLLABUS
8. CONTRIBUTION OF THE COURSE TO THE EDUCATION OF THE STUDENT: In this course, the student will gain a broader view of the formulation and evaluation of investment projects to explore new markets and develop new business to continue in the long term. In order to formulate and evaluate investment projects, the student must have learned well the chairs of analysis and market research, business administration, engineering economics and finance all seen as prerequisite. BASIC TRAINING PROFESSIONAL TRAINING SOCIAL SKILLS DEVELOPMENT 9. THE RELATIONSHIP BETWEEN THE LEARNING OUTCOMES OF THE COURSE AND THE LEARNING OUTCOMES OF THE DEGREE PROGRAM: LEARNING CONTRIBUTION LEARNING OUTCOMES OF THE OUTCOMES OF (High, Medium, THE STUDENT MUST: DEGREE PROGRAM* THE Low) COURSE** a) Have the ability to work as part of a multidisciplinary team; b) Understand ethical and professional responsibility; c) Have the ability to communicate effectively in Spanish both orally and in writing; d) Have the ability to communicate effectively in English; e) Have a broad education to understand the impact of the solutions of their career in the global, economic, environmental and social context; f) Recognize the need to continue learning throughout life and have the ability and attitude to do so; g) Understand contemporary issues; MEDIUM 4 MEDIUM 6 MEDIUM 1 MEDIUM MEDIUM 2 LOW 2 MEDIUM 5 h) Have the ability to lead and show initiative MEDIUM 2 Though a group project, create investment portfolios with different shares and calculate risk and profitability using market information. Have ethical behaviour during homework, tests and exams Demonstrate ethics during group work Create surveys before beginning the project Calculate costs and cash flow for different financial areas. Calculate the different taxes. Presentation of research and personal project. Research the internet and read English Literature in order to do homework and group work. Do an analysis of supply and demand within the confines of the project. Taking into account global and regional variables. Take courses in further education on order to stay updated. Be up to date with changes in regulations to discover new sources of finance Know the history of financial crises and take precautions in order to minimise losses. Decide whether or not to invest in the group project. i) Apply analytical methods and interpret the results for efficient decision making; j) Analyze and evaluate the performance of markets with different economic and administrative structures; HIGH 3 MEDIUM 3 Create an investment project in order to assess its feasibility. Understand supply and demand in order to project cash flow. IG1003-3 Page 4 of 5 COURSE SYLLABUS
k) Analyze and interpret the financial and accounting information of a company for effective decision making. HIGH 6 Calculate cash flow using criteria or VAN and TIR. Estimate the deductions taking into account risk. Observe which variable are more sensitive within cash flow projections. (* This column must also include the common curricular outcomes (cross-curricular outcomes) that the institution approved on 16th February 2012 via resolution CP 12-02-078 of 23rd February 2012 (CAc-2012-034)) (** Only the NUMBER corresponding to section 5 of this document must be written.) 10. EVALUATION IN THE COURSE: Evaluation activities Exams Tests Homework/tasks Projects Laboratory/Experiments Class participation Visits Other 11. PERSON RESPONSIBLE FOR THE CREATION OF THE SYLLABUS AND THE DATE OF ITS CREATION: Created by ECON. PEDRO GANDO C., MBF Date NOVEMBER 12, 2012 12. APPROVAL: ACADEMIC SECRETARY OF THE ACADEMIC DEPARTMENT NAME: Lcda. Ingrid León Vasconez SIGNATURE: DIRECTOR OF TECHNICAL ACADEMIC SECRETARY NAME: MSc. Marcos Mendoza Vélez. SIGNATURE: Date of approval by the Directive Council: R-CD-FEN- 004-2013 January 14, 2013 13. VALIDITY OF THE SYLLABUS: RESOLUTION OF THE POLYTECHNIC BOARD: 13-10-269 DATE: October 17, 2013 IG1003-3 Page 5 of 5 COURSE SYLLABUS