Please note! Course description is confirmed for two academic years, which means that in general, e.g. Learning outcomes, assessment methods and key content stays unchanged. However, via course syllabus, it is possible to specify or change the course execution in each realization of the course, such as how the contact sessions are organized, assessment methods weighted or materials used.


The main objective of this course is to provide students with the capability to participate in capital investment decision-making processes. After this course students will understand the opportunities and limitations of various capital investment methods and how they could be used in modern organizations.

Credits: 6

Schedule: 02.03.2021 - 13.04.2021

Teacher in charge (valid 01.08.2020-31.07.2022): Jari Huikku

Teacher in charge (applies in this implementation): Jari Huikku

Contact information for the course (applies in this implementation):

CEFR level (applies in this implementation):

Language of instruction and studies (valid 01.08.2020-31.07.2022):

Teaching language: English

Languages of study attainment: English


  • Valid 01.08.2020-31.07.2022:

    The major topics of capital budgeting cover the general features of capital budgeting, cost of capital, costs and benefits of investments, flexibilities and uncertainties in capital budgeting, strategic investments, capital budgeting in modern production environment and in an international context, special features of R&D/IT-investments, and post-completion auditing.

Assessment Methods and Criteria
  • Valid 01.08.2020-31.07.2022:

    1. Lectures given by Associate Professor Jari Huikku

    2. Exercises (40 %)

    3. Exam (60 %)


  • Valid 01.08.2020-31.07.2022:

    - Classroom hours, 24 h

    - Class preparation, 16 h

    - Exercises 90 h

    - Exam preparation, 27 h

    - Exam, 3 h


Study Material
  • Valid 01.08.2020-31.07.2022:

    Baker, H.K. and English P. (eds.) (2011) Capital budgeting valuation; Financial analysis for today's investment projects. ISBN 9780470569504.

    Material distributed by the lecturer.


Registration for Courses
  • Valid 01.08.2020-31.07.2022:

    Via WebOodi. Please see WebOodi for the registration dates.

    Max. 60 students can be accepted to the course. Priority is given to students in the Accounting M.Sc. program and then CEMS students.

  • Applies in this implementation:

    The course will be organised online (through Zoom).

    The course format
    comprises of the following elements: participation in the lectures (online), 3 personal learning
    diaries based on pre-readings (represent 15% of the grading), 2 individually
    conducted investment appraisal exercises (10%), case analysis prepared in small
    groups (15%) and final exam (60%).

SDG: Sustainable Development Goals

    9 Industry, Innovation and Infrastructure