The course is concerned with the methodologies used in the selection and appraisal of investment decisions in private and public sectors. The course aims to introduce the main theoretical and practical issues involved in the appraisal and assessment of investment projects. Investment and project appraisal; difference between private and public sector investments; basic principle of investment appraisal; main evaluation methods and techniques; relative strengths and weaknesses. NPV [Net Present Value] methods of investment appraisal and the identification of and use of cash flows for investment appraisal, how to deal with problems posed by capital market imperfections, and how to take account of risk and uncertainty in the context of investment appraisal. Basic principles of cost-benefit analysis, using a simple example to illustrate the rationale for, and common techniques used in, social cost-benefit analysis. Identifying relevant costs and benefits and analyzing the problems associated with their valuation.
