Investment Economics and Innovation

BMAN31212 Investment Economics and Innovation 10 Semester 2 Undergraduate Level 3 Xin Deng Unit coordinator Alliance Manchester Business School 1 FHEQ level (Framework for Higher Education Qualifications) ' Last part of a Bachelors ' European Credit Transfer & Accumulation System Rating : 5.0 <div class="WACEditing EditMode EditingSurfaceBody FireFox WACViewPanel_DisableLegacyKeyCodeAndCharCode usehover" style="direction:ltr;overflow:hidden;visibility:visible;" id="WACViewPanel_ClipboardElement" contenteditable="false" spellcheck="false" tabindex="0"><div class="OutlineElement Ltr SCXW183462007 BCX2" style="direction:ltr;"><p class="Paragraph SCXW183462007 BCX2" style="background-color:transparent;border-left:0.666667px solid rgb(0, 0, 0);border-right:0.666667px solid rgb(0, 0, 0);color:windowtext;font-style:normal;font-weight:normal;margin:0px;padding:1.33333px 8px 1.33333px 5.33333px;text-align:left;text-indent:0px;vertical-align:baseline;" data-ccp-border-top="0.6666666666666666px solid #000000" data-ccp-padding-top="1.3333333333333333px" data-ccp-border-bottom="0.6666666666666666px solid #000000" data-ccp-padding-bottom="1.3333333333333333px" paraid="1972736165" paraeid="{e479ab63-12ec-4c3f-8c70-b0dec0089b49}{229}"><span class="TextRun SCXW183462007 BCX2 NormalTextRun" style="font-family:"Microsoft Sans Serif", "Microsoft Sans Serif_EmbeddedFont", "Microsoft Sans Serif_MSFontService", sans-serif;font-size:10pt;line-height:17.2667px;" data-contrast="none" xml:lang="EN-GB" lang="EN-GB">This unit provides students with a practical introduction to project investment appraisal, equipping them with the skills to analyse and evaluate business ideas from conception to presentation. Designed for those with no prior experience in finance, the course guides students through modelling investment projects, applying formal techniques, and interpreting key performance indicators. By building and analysing their own business or project, students gain hands-on experience in preparing structured proposals for decision-makers. This unit is ideal for aspiring professionals and entrepreneurs looking to enhance their investment decision-making capabilities.<span class="EOP SCXW183462007 BCX2" style="font-family:"Microsoft Sans Serif", "Microsoft Sans Serif_EmbeddedFont", "Microsoft Sans Serif_MSFontService", sans-serif;font-size:10pt;line-height:17.2667px;" data-ccp-props="{"335572071":4,"335572072":1,"335572073":4278190080,"335572075":4,"335572076":6,"335572077":4278190080,"335572079":4,"335572080":1,"335572081":4278190080,"335572083":4,"335572084":4,"335572085":4278190080,"469789798":"single","469789802":"single","469789806":"single","469789810":"single"}"> </div></div> <div class="WACEditing EditMode EditingSurfaceBody FireFox WACViewPanel_DisableLegacyKeyCodeAndCharCode usehover" style="direction:ltr;overflow:hidden;visibility:visible;" id="WACViewPanel_ClipboardElement" contenteditable="false" spellcheck="false" tabindex="0"><div class="OutlineElement Ltr SCXW183462007 BCX2" style="direction:ltr;"><p class="Paragraph SCXW183462007 BCX2" style="background-color:transparent;border-left:0.666667px solid rgb(0, 0, 0);border-right:0.666667px solid rgb(0, 0, 0);color:windowtext;font-style:normal;font-weight:normal;margin:0px;padding:1.33333px 8px 1.33333px 5.33333px;text-align:left;text-indent:0px;vertical-align:baseline;" data-ccp-border-top="0.6666666666666666px solid #000000" data-ccp-padding-top="1.3333333333333333px" data-ccp-border-bottom="0.6666666666666666px solid #000000" data-ccp-padding-bottom="1.3333333333333333px" paraid="1972736165" paraeid="{e479ab63-12ec-4c3f-8c70-b0dec0089b49}{229}"><span class="TextRun SCXW183462007 BCX2 NormalTextRun" style="font-family:"Microsoft Sans Serif", "Microsoft Sans Serif_EmbeddedFont", "Microsoft Sans Serif_MSFontService", sans-serif;font-size:10pt;line-height:17.2667px;" data-contrast="none" xml:lang="EN-GB" lang="EN-GB">This unit provides students with a practical introduction to project investment appraisal, equipping them with the skills to analyse and evaluate business ideas from conception to presentation. Designed for those with no prior experience in finance, the course guides students through modelling investment projects, applying formal techniques, and interpreting key performance indicators. By building and analysing their own business or project, students gain hands-on experience in preparing structured proposals for decision-makers. This unit is ideal for aspiring professionals and entrepreneurs looking to enhance their investment decision-making capabilities.<span class="EOP SCXW183462007 BCX2" style="font-family:"Microsoft Sans Serif", "Microsoft Sans Serif_EmbeddedFont", "Microsoft Sans Serif_MSFontService", sans-serif;font-size:10pt;line-height:17.2667px;" data-ccp-props="{"335572071":4,"335572072":1,"335572073":4278190080,"335572075":4,"335572076":6,"335572077":4278190080,"335572079":4,"335572080":1,"335572081":4278190080,"335572083":4,"335572084":4,"335572085":4278190080,"469789798":"single","469789802":"single","469789806":"single","469789810":"single"}"> </div></div> This course aims to introduce students with no prior experience of project investment appraisal to the methods used to analyse such investments effectively. It is particularly relevant for students aspiring to enter the business world, whether working for companies or establishing their own ventures, where formal assessments of proposed projects or businesses are often required. These assessments are typically presented to decision-makers, such as investment banks or Boards of Directors.The course equips students with the skills to conduct these analyses by guiding them through the process of building a business or project idea from scratch. Students will model their project using formal techniques and performance indicators and present their findings in a well-structured document. Previous student projects have explored a diverse range of ideas, including sports centres, restaurants, new product launches, renewable energy schemes, escort agencies, theme parks, retail businesses, driving schools, hotels, and hostels.Syllabus (indicative curriculum content):  The course is delivered through three key elements: formal lectures, seminar discussions, and a practical project developed and carried out by each student. The lectures will cover the following topics:1. Introduction to the course  - Overview of course objectives, structure, and expectations2. The concept of investment and appraisals - Fundamental principles of investment decision-making and evaluation3. Modelling investment projects: traditional/simple indicators  - Introduction to basic modelling techniques and straightforward investment indicators4. Investment Indicators (2 lectures)  - Inter-temporal choice and discounting, discounted indicators 5. Detailed consideration of sensitivity analysis  - Exploring the implications of uncertainty and variability in investment models6. Broader aspects of investment and application of the concepts  - Examining wider considerations, including strategic, operational, and contextual factors in investment decisionsIf required for some individual projects, additional lectures will cover:Cost-benefit analysis for public sector projects & Project management toolsOther specialised topics may also be included, particularly if they are directly relevant to individual projects. For example, ethical considerations related to the use of discounting in long-term or public sector projects may be addressed as necessary.  Understand the concept of investment appraisal and the techniques used to evaluate projectsUnderstand how to model investments using formal techniques and apply key performance indicators  Recognise how investment indicators guide decision-making and the implications of their use in project evaluation  Analyse and interpret technical indicators to make informed investment decisions.Evaluate the robustness of investment models and identify potential sources of error or misuse.Critically assess the role of modelling in decision-making and its limitations in real-world scenarios. Construct a simple investment model from scratch, applying formal appraisal techniques.Prepare a professional and structured investment appraisal report tailored for decision-makers.Present their project ideas effectively, demonstrating clarity, confidence, and professionalism. Develop problem-solving skills through the creation and analysis of real-world investment projects.Communicate complex investment findings effectively in both written reports and oral presentations.Demonstrate initiative and adaptability when addressing challenges in investment modelling and decision-making. Lectures and seminars, supported by private study and e-learning resources.Lecture hours - 14 hours (up to 2 hours per week over 7 weeks). Early lectures will be longer to cover foundational topics needed for assignments and projects. An additional 3.5 optional informal hours may be offered for project support if required.Seminar hours - 7 hours (1 hour per week for 7 weeks). Seminars focus on project discussions, feedback, and supervision. Attendance and participation are mandatory, as students will present their work and contribute to peer discussions.Private study: 80 hours – comprising independent study, project preparation, coursework, and review of lecture and seminar materials.Asynchronous materials and e-learning tools, such as recorded lectures and online forums, will complement face-to-face sessions. These resources allow students to revisit key content and engage with the material at their own pace. All lectures and seminars are conducted synchronously, providing opportunities for interaction and immediate feedback. Informal Contact Methods 1. Office Hours 0 Other 100% Coursework - project report (100%) -    Informal advice and discussion during seminars.-    Written and/or verbal comments on assessed or non-assessed coursework.-    Written and/or verbal comments after students have given a group or individual presentation.-    Other - please describe: Each student undertakes a particular project and the seminars allow discussion between students regarding each project as well as advice from the seminar leader. Pre-requisites:This course is intended for students with no background in the subject, but who would like to know more about the techniques which are used to make decisions about project investments. However, accounting and finance students have found it useful and interesting, as it includes an extended individual case study. The essential requirement is an interest in the nature of decisions about investment in real projects. It is an advantage to be familiar with simple use of spreadsheets, but this can be learned sufficiently during the course. Y The required reading for this course is a book which has been published in a number of editions (consecutive numbers), with two authors and two titles! However the text in each edition is very similar and any edition is acceptable though the exact chapter numbers and their titles may be different ! Generally, the first 6 chapters and the 11th chapter are used (the rest of the book addresses financing decisions which are not covered in this course). The advantage of this is that there are numerous copies of the text available in various campus libraries.Lumby, S. (1991), Investment Appraisal and Financing Decisions, Chapman & Hall (1st to 5th edition)Lumby, S. & Jones, C (1999) Investment Appraisal and Financing Decisions, Chapman & Hall (6th edition)Lumby, S. & Jones, C (2011) Corporate Finance: Theory and Practice, Chapman & Hall (8th edition): Part 2Supplementary Text: Several additional readings will be recommended in lectures during the course, including, for example, HM Treasury Green Book (on the appraisal of public projects) Lectures 14 Seminars 7 0 79 Pre-requisites: This course is intended for students with no background in the subject, but who would like to know more about the techniques which are used to make decisions about project investments. However, accounting and finance students have found it useful and interesting, as it includes an extended individual case study. The essential requirement is an interest in the nature of decisions about investment in real projects. It is an advantage to be familiar with simple use of spreadsheets, but this can be learned sufficiently during the course.Co-Requisite: None Dependent courses: None   Programme Restrictions: Available as a free choice option to students who have received prior agreement from their registering school.Not available to BSc in Management/Management (Specialism), IMABS, IM, IBFEorITMB students.