Sumários

1. DCF Methods and EVA 2. Capital budgeting risk analysis

9 Novembro 2020, 10:00 • JOÃO CARLOS CARVALHO DAS NEVES

  1. Discounted Cash Flow Methods

WACC method - Project Cash Flow discounted to the WACC - The method most used in practice. Advantageous and disadvantageous

Equity method - Equity cash flow discounted to the cost of equity - Advantageous and disadvantageous

Adjusted Present Value - Project Cash Flow discounted to the unlevered cost of capital plus the value created by debt (usually the tax shield value)

MVA as present value of EVA

MVA as an equivante to NPV

     2. Capital budgeting risk analysis

Risk and uncertainty

Methods to analyse risk

Sensitivity analysis - oneway and two ways analysis -  How to do use Tables in Excel. Advantageous and disadvantageous of this analysis

NPV break even - How to use Goal seek in Excel. Advantageous and disadvantageous of this analysis

Scenario analysis - How to do it in Excel. Advantageous and disadvantageous of this analysis

Monte Carlo Simulations and Crystal Ball

 

Investment appraisal metrics

3 Novembro 2020, 10:00 • JOÃO CARLOS CARVALHO DAS NEVES

Investment appraisal metrics:NPV, IRR, Modified IRR, Profitability Index and Equivalent Annual Annuity

Why inflation matters

Special cases of capital budgeting: Comparing projects with unequal cash timings, unequal sizes, unequal life spans, unequal risks, corporate budget constraints

Why NPV is more reliable than other metrics: Measures value creation, timing of cash flows, risks of projects cash flow and sdditivity  

Identifying and estimating a project’s relevant cash flows 

Capital Budgeting

2 Novembro 2020, 10:00 • JOÃO CARLOS CARVALHO DAS NEVES

4.1.             The capital investment process

4.2.             Investment appraisal metrics: Payback period, NPV, IRR, Modified IRR, Profitability Index

Capital Budgeting

27 Outubro 2020, 10:00 • JOÃO CARLOS CARVALHO DAS NEVES

4.1.             The capital investment process

4.2.             Investment appraisal metrics: Payback period, NPV, IRR, Modified IRR, Profitability Index 

Class change

26 Outubro 2020, 10:00 • JOÃO CARLOS CARVALHO DAS NEVES

This class occurred at 11/11/2020 Auditório 3 Quelhas 10:00-13:00