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A.Y. 2019 / 2020

Full year
Type of Learning Activity 
Programme specific subjects
Study Path 
[PDS0-2015 - Ord. 2015] common
Teaching language 


Learning objectives 

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.


Urban Economics and Real Estate Appraisal


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

Teaching format 

Theoretical lessons and exercises on the preparation of an investment valuation developed by the student

Extended Programme 

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
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

End-of-course test 

Final examination with exercise solution on cash flow analysis, cost benefit analysis and multiple criteria analysis. The student to access the theory test will have to prepare a report on an investment valuation to be agreed with the teacher to verify the acquired knowledge and the applied skills.Knowledge and communication skills will be evaluated at the end of the course through a theoretical written test.Alternatively, the student will support the assessment of theoretical knowledge through oral examination during official appeals.In any case, for the overall evaluation it is necessary to draw up and discuss the valuation report to be agreed with the teacher. The final valuation report and approved by the teacher must be delivered 15 days before the examination.

Other information 

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


Exercises and teaching aid on
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.

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