Department of Engineering
Dean:Dr. Ármann Gylfason
Email:ru@ru.is
Website:http://www.ru.is/tvd
TeachersView
MSc in Financial Engineering
Semesters:4
Years:2
ETCS:120
About majorFjármálaverkfræði er þverfagleg grein sem samþættir fjármálafræði við verkfræðilegar aðferðir, stærðfræðileg líkön, tölfræði, aðgerðagreiningu og hagnýta tölvunarfræði. Nám í fjármálaverkfræði hentar þeim sem hafa áhuga á t.d. áhættustýringu, afleiðuviðskiptum eða fjárstýringu. MSc námið er mótað að kröfum Verkfræðingafélags Íslands um fullnaðarmenntun í verkfræði.
Learning OutcomesView
Education cycle2
Legend
Mandatory course on majorTeaching language
Optional course on majorPrerequisites for course
Print
Vorönn/Spring 2024
More infoEnergy Financial AssessmentElectiveSE-833-FA2ECTS 6
Year
1. yearPrint
SemesterSpring 2024
Level of course4. Second cycle, introductory
Type of courseElective
PrerequisitesNo prerequisites.
ScheduleTaught during the 12 week teaching period.
Lecturer
Páll Jensson
Content
After the course students will be able to develop computer models to assess the profitability/feasibility of investments.
Learning outcome - Objectives
At the end of the course, the student will be able to develop mathematical models to evaluate the profitability/feasibility of investments. This main criterion can be broken down into the following sub-criteria:
  • Understand the theoretical basis of profitability assessment and the time value of money
  • Calculate the main measures of profitability, incl. present value and compound interest
  • Use the three-point method for planning and estimating initial costs
  • Understand the concept of working capital requirements
  • Know and calculate the main ways to finance a project
  • Make a model of the operating account, cash flow and balance sheet of companies
  • Understand the context and differences between these accounts
  • Discuss and explain the main terms and methods of accounting and financial management
  • Calculate the main key figures in business operations
  • Present and interpret the results of profitability calculations
  • Do a sensitivity analysis, incl. sensitivity star and scenario analysis for projects
  • Perform Monte Carlo simulations for project risk assessment
  • Use decision trees for investment decisions
  • Understand decision-making methods when there are multiple objectives and be able to use the AHP method
  • Understand the difference between a feasibility study and a business plan and the objectives of each
  • Write a good business plan that includes a budget for an investment project
Course assessment
Project and exam.
Reading material
No reading material found.
Teaching and learning activities
Lectures and individual assignments.
Language of instructionEnglish
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