Cod: 61036
Department: DCSG
ECTS: 6
Scientific area: Management
Total working hours: 156
Total contact time: 15

This course unit provides students with knowledge on key elements to be considered in the study of a proposed investment. It deals with basic concepts (current value, invested capital, cash flow) to be used in in-depth analysis of return investments and traditional evaluation methods (NPV, IRR, ROI, Pay-Back Period). It introduces a new paradigm for evaluating projects and making investment decisions based on real options.

Return analysis
Traditional evaluation methods
Complementary evaluation methods
Real Options

Students are expected to be able to:
• Provide basic knowledge on the key elements of investment projects
• Present the main techniques and tools for evaluating projects
• Be aware of risks and ways of dealing with it

I - Evaluation Methodologies
1. Fundamentals of project evaluation
2. Forecasting methods
3. Financial flows
4. Investment financing
5. Project selection


II - Complementary Topics on Investment Analysis
6. Mutually exclusive investments
7. Inflation of investment analysis
8. Evaluation by real options

Textbooks
Couto, G., J. Crispim, M.M. Lopes, P. Pimentel, F. Sousa, Avaliação de Investimentos, Áreas Editora.

Secondary reading
Soares, I., J. Moreira, C. Pinho e J. Couto, Decisões de Investimento – Análise Financeira de Projectos, Edições Sílabo.
Damodaran, A., Investment Valuation. Tools and Techniques for Determining the Value of Any Asset, John Wiley and Sons, New York.

E-learning

Continuous assessment is privileged: 2 or 3 digital written documents (e-folios) during the semester (40%) and a presence-based final exam (p-folio) in the end of the semester (60%). In due time, students can alternatively choose to perform one final presence-based exam (100%).

Recommended precession: Financial Mathematics, Corporate Finance, Accounting