Understanding knowledge: Understand the fundamental principles of the assessment of economic resources investment: cash flow analysis, cost benefit analysis, multiple criteria analysis.
Applied understanding skills: To be able to correctly set up a public and private investment assessment procedure and a choice between alternatives using multicriteria approaches. Make the correct estimate of the costs, revenues and benefits of an investment and make the appropriate economic and financial calculations.
Autonomy of judgment: to be able to apply the acquired knowledge to solve simple investment assessments using the criteria of the present net value, the internal rate of return and / or value functions built using multicriteria approaches.
Communication skills: to be able to illustrate, both in written and oral form, the evaluations carried out and to support its correctness on a logical and factual level.
Learning ability: To know how to collect information from direct and indirect sources needed to carry out original economic valuations on real investments.

The student should know the basics of Economics and real estate appraisal (not compulsory).

The course is dedicated to the analysis methods of investment and planning decisions and their application to a case study. 1. Introduction to the investments analysis 2. The approaches to the valuation of investments 3. The evaluation of private investments 3.1. The cash-flow analysis 3.2. The choice of the discount rate 3.3. The selection criteria (NPV, IRR) 3.4. The risk and uncertainty DCF 4. The cost-benefit analysis 4.1. The valuation of benefits and costs 4.2. The choice of the discount rate 4.3. The selection criteria (NPV, IRR) 4.4. The risk and uncertainty in the CBA 4.5. Social equity in the CBA 5. The multi-criteria analysis of public investments 5.1. The multi-objective and multi-attribute analysis 5.2. The value functions and utility functions theory 5.3. The analytic hierarchic analysis 5.4. The concordance and discordance analysis

Exercises and teaching aid on http://moodle2.units.it
Brosio G. (1986). Economia e finanza pubblica. NIS, Roma.
Cacciamani C. (ed) (2003) Il rischio Immobiliare, Egea, Milano.
Hoesli M., Morri G. (2010) L'investimento immobiliare. Mercato, valutazioni, rischio e portafoglio. Hoepli.
Prizzon F. (1995) Gli investimenti Immobiliari, Celid, Torino.
Rostirolla P. (1992) Ottimo economico: processi di valutazione e decisione. Liguori Editore. Napoli.
Stellin G., Rosato P. (1998) La Valutazione dei Beni Ambientali, CittaStudiEdizioni, Torino

1. The assessment of private investment
Basic concepts
Investment valuation techniques
Investment classification
Investment objectives
Payback period
Cash flows analysis
The net present value
The internal rate of return
The discounted profitability index
Choosing the discount rate
The weighted average cost of capital
Analysis of uncertainty about investment valuation
Scenario analysis
Montecarlo simulation
Estimating real estate investment costs
The valuation of real estate investment income
Real Estate Investment Cash Flow
The viability of real estate investment

2. Evaluation of public investment
Private goods and public goods
Externalities
Strategic behaviour and common pool resources
The total economic value
Cost-efficacy analysis
The evaluation of public goods
Willingness to pay and willingness to accept compensation
Methods for monetary valuation of public goods
Contingent evaluation and conjoint choice analysis
The hedonic pricing method
The travel cost method
Appraisal methods
Choosing the Social Discount Rate
Cost benefit analysis and distributive aspects

3. Multicriteria analysis methods
Basic concepts
The Pareto criterion
Multi-attribute methods and multi objective methods
Multi-attribute evaluation phases
The analysis matrix
The value / utility functions
The evaluation matrix
The choice of attribute weights
The criterion of the weighted sum
The pairwise comparison approach (AHP)
The ELECTRE method
Concordance analysis
Discordance analysis
The dominance analysis

Lectures and discussion of case-study

Students are warmly invited to attend the lessons in order to benefit from the discussion of the case-studies.

Knowledge of the subject matter are assessed through written tests on official exam sessions. The tests focus on solving exercises and theoretical questions on cash flow analysis, cost-benefit analysis, and multi-criteria analysis. To pass the exam, knowledge of basic concepts is required, while to achieve the highest grade, students must demonstrate excellent mastery of theoretical principles and operating procedures. The exam score is awarded as a grade out of 30 based on the arithmetic mean of the scores obtained for the individual questions, weighted where necessary for the difficulty of each question. To pass the exam, students must achieve a score of at least 18/30. To achieve the maximum score (30/30 cum laude), students must achieve a score of at least 30/30 on all questions and demonstrate the ability to critically analyze the topics covered in the exam. To pass the exam, students must, in addition to passing the written test, prepare two written reports: a. an investment evaluation with a cost-benefit analysis; b. the solution to a problem involving the choice between alternatives using multi-criteria analysis. Reports can earn up to three additional points in the written exam based on their completeness and originality. The subject of the reports must be agreed with the professor. The final reports must be submitted at least one week before the exam date.

This course explores topics closely related to one or more goals of the United Nations 2030 Agenda for Sustainable Development (SDGs)