Teaching code

4S003386

Teacher

Riccardo Scarpa

Credits

5

Language

Italian

Scientific Disciplinary Sector (SSD)

AGR/01 - AGRICULTURAL ECONOMICS AND RURAL APPRAISAL

Period

Semestre unico  dal Oct 18, 2021 al Feb 18, 2022.

Lessons timetable Moodle Seminars 0

To show the organization of the course that includes this module, follow this link:  Course organization

Learning outcomes

This module has the objective to expose students to the principles of investment analysis and of theory of real estate valuation, with specific reference to the wine industry. Starting from the theory of value e from the foundation of financial mathematics, the student is gradually progressed towards learning and professional case studies which are typical of the wine sector, with special reference to investments in land, machinery, integrated (vertical and horizontal) businesses , and human capital, inclusive of multiplier and other spillover effects at the regional level.

Program

INVESTMENT ANALYSIS AND APPRAISAL IN THE WINE BUSINESS
(academic year 2021-22)
1. Introduction to the course and its organization, history, and evolution of the subject, basic concepts and links to economics.
2. Introduction to the elements of financial mathematics and their use in discounting and future values of assets and incomes, interest (simple and compounded), periodicities, annuities, discounting and the role of time, present & future value
3. Diversity between saving and investment, examples in the wine sector.
4. Flows of revenues and costs, cumulations at the beginning, at the end, and at intermediate moments, amortization installments, annual and multi-annual values limited or perennial.
5. Determinants of discount factors, differences between real and nominal interest rates.
6. Uncertainty in investment plans and its formal inclusion as subjective and objective probabilities.
7. Investment analysis using typical cash flow (capital budgeting) for vineyards with numerical simulation of uncertainty
8. Identification and assessment of the returns to investment from labour-saving technology.
9. A typical revenue and cost distribution over time for a vineyard, and its optimal age of replacement.
10. Investment analysis in activities of wine-making, wine aging and bottling.
11. Assessment of investments from the financial, social, and familial perspectives.
12. Portfolio management and subjective versus market valuation of financial products
13. Grape hail insurance, private and subsidized.
14. Numerical risk simulation, with and without subjective probabilities (group assignment)
15. Market value of the vineyard plot, and market value of the vertically integrated winery
16. Investment analysis in individual reputation and in the district of production
17. Case studies from the world.
18. Investment analysis in vineyards for wine grape production with the method of the real options
19. Tutorials on computation with R (via R-Studio) and MS-Excel

Examination Methods

Students' evaluation takes place on the basis of their participation to group activities during the course, such as group learning, presentations, reports and finalized via a final exam that will be written and eventually oral.