31616 - Economics and Appraisal T

Academic Year 2010/2011

  • Teaching Mode: Traditional lectures
  • Campus: Bologna
  • Corso: First cycle degree programme (L) in Civil Engineering (cod. 0919)

Learning outcomes

Giving to the students the basic knowledge for evaluation of investments and property evaluations.

Course contents

ECONOMY

a. The concept of investment and different kinds of investments

b. Capitalization and discounting back: elements of financial mathematics.

c. Determining the value of an investment: the Net Present Value.

d. Investment valuation: steps of the decision procedure.

e. Basic concepts to evaluate an investment: the expected return rate, the economic life of a project, the relevant cash flows.

f. Problems in assessing cash flows.

g. Other methods to gain investment valuation: internal return rate, average pay-back time, the average accounting profit.

h. Investment valuation within the firm schedule.

PROPERTY APPRAISAL

Introduction and Definitions

Property Prices and Property Valuation – Italian and international Property Valuation - Valuation principles - Valuation Reports

Appraisal Values and criteria

Synthetic (or direct) appraisal procedures - Real estate market – Statistical sources – Statistical analysis

The cost value - Construction and reconstruction (reproduction) costs – The technical costs – The depreciation for physical deterioration and functional and economic obsolescence - Statistical sources

Analytic appraisal procedures - the direct capitalization - The yield capitalization - The discounted cash flow analysis procedures

Derivative real estate appraisals

The transformation value - The complementary value - The substitution value

Other valuations

Buildable sites – Expenses valuations connected with the real estate process

Plans valuations

Readings/Bibliography

Anthony, R.N.; Breitner, L.K.; Macri, D.M. – Il bilancio: Analisi economiche per le decisioni e la comunicazione della performance. 4° Ed., McGraw-Hill. Capitoli: 1, 2, 4, 5.

Anthony, R.N.; Hawkins, D.F.; Macri, D.M.; Merchant, K.A. – Sistemi di controllo: Analisi per le decisioni aziendali – McGraw-Hill, 3° edizione. Capitoli 2 (pp. 31-44), 3, 14, 15, 16.

Vittorio Gallerani, Giacomo Zanni, Davide Viaggi – Manuale di Estimo, Seconda edizione , McGraw-Hill. 2011. Parti 1, 3, 4, 5 e cap. 26.

Teaching methods

Frontal lessons and exercises.

Assessment methods

Written exam. Dates determined according to the School's teaching calendar and available through Uniwex.

Office hours

See the website of Stefano Stanzani