Currículo
Project Appraisal PA
Contextos
Groupo: Economics > 1º Ciclo > Unidades Curriculares Optativas
ECTS
3.0 (para cálculo da média)
Objectivos
The aim is for students to master the concepts, methodologies, and techniques of Project Financial Analysis, enabling them to make informed and objective decisions regarding the use of scarce resources within organizations. Additionally, it is intended that students develop an integrated and systemic view of the company, understanding the role of this scientific area and its relationship with other areas (particularly with Business Strategy). The learning outcomes of the curricular unit include: • Incorporate relevant financial management and decision theories into investment project analysis • Discuss the methods used in the analysis of non-financial investments and their reliance on imperfect information. • Highlight the importance of uncertainty and risk in the decision-making process. • Apply theoretical concepts to real-world situations and cases
Programa
1. Introduction / Basic Concepts (Consumption vs. investment conflict, opportunity cost, fundamental financial calculation instruments – compound interest, equivalent and proportional rates, real and nominal rates, constant annuities and perpetuities) 2. Project Analysis Methodology (Project cycle, feasibility studies, perspectives of analysis – economic, financial, and social, relevant cash flows, distinction between profit and cash flow, project perspective and shareholder perspective, opportunity cost estimation, business plans) 3. Evaluation Criteria (Estimation of cash flows, cost of capital, Payback Period (PRI), Net Present Value (NPV), Internal Rate of Return (IRR), Benefit-Cost Ratio (B/C), investments of unequal lifespans / Equivalent Annual Cost (EAC), selection of the optimal replacement time, choice between repair and replacement, financial resource rationing) 4. Appraisal under Uncertain Conditions (Uncertainty and risk, sensitivity and scenario analysis, inflation, decision-making with NPV, real options and decision trees)
Método de Avaliação
The teaching approach is predominantly theoretical-practical, aligning theoretical concepts and methodologies with their practical application as well as with business examples. The evaluation of the course is carried out through quizzes and a group project assignment, during which students apply the concepts learned in an integrated manner.
Carga Horária
Carga Horária de Contacto -
Trabalho Autónomo - 80.0
Carga Total -
Bibliografia
Principal
- The Capital Budgeting Decision. Economic analysis of investment projects. 9th Edition. New York, NY: Routledge.: Bierman, H. and Smidt, S. 2007
- Principles of Corporate Finance, 4e. McGraw Hill: Hillier, D., Ross, S., Westerfield, R., Jaffe, J., & Jordan, B. 2019
- Investment Valuation – Tools and Techniques for Determining the Value of Any Asset, 3rd ed, John Wiley & Sons, New York: Damodoran, A. 2012
- Applied Corporate Finance, John Wiley and Sons, 4th Ed., NewYork.: Damodaran, Aswath 2015
- Principles of Corporate Finance, McGrawHill, 14th Edition, NewYork.: Brealey, Myers, Allen & Edmans 2023