To show the organization of the course that includes this module, follow this link Course organization
This module introduces students to the principles of investment analysis and of theory of real estate appraisal, with specific reference to the wine industry. It starts from the general theory of value and from the basic foundations of financial mathematics, it moves on to to a progressive exposure to various practical examples that are typical of the investments in the wine industry, with specific reference to land purchases and improvements, machinery, vertical and horizontal integration, and human capital investment, inclusive of external effects, such as regional multipliers of expenditure.
1. Introduction to the course content and its organisation. History and evolution of the discipline, foundation concepts and links to economics.
2. Introduction to basic elements of financial mathematics and their use in computing the discount and preset value of future income and values.,
3. Differences between savings and investments, with examples from the wine business.
4. Handling of flows in costs and revenues, intermediate time accumulations, initial and final accumulations (present value), reintegration rates, annuities and poli-annuities (limited and unlimited).
5. Determinants of interest rates, real and nominal rates.
6. Uncertainty in investment plans and its formal representation with subjective and objective probabilities.
7. Identification and valuation of the returns to investments, labour saving technologies.
8. Vineyard investment analysis: temporal distributions of costs and revenues, optimal age of vineyard substitution.
9. Investment analysis for wine ageing and bottling.
10. Investment criteria from different perspectives: financial, social and familiar.
11. Investment portfolio management, objective and subjective valuation of financial products.
12. Risk management via private and publicly subsidised hail insurance.
13. Group task: risk simulation with and without subjective probabilities.
14. Market value of vineyard and vertically integrated wine making facilities.
15. Investment analysis on reputation of single firm and of collective district of production.
16. International case studies.
17. Computation practicals with R (via R-Studio & R-Markdown) and MS-Excel
Students' learning and progress will be evaluated on the basis of several criteria that assess participation to groups activities, final written exams, which is followed by a final mark proposal, which can be either accepted and confirmed or improved during the oral exam.