Avaliação de Investimentos
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., M.M. Lopes, P. Pimentel, Avaliação de Investimentos – Teoria e Prática, Rei dos Livros.
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 digital written documents (e-folios) during the semester (40%) and a final digital test, Global e-folio (e-folio G) at the end of the semester (60%). In due time, students can alternatively choose to perform one final exam (100%).
Recommended precession: Financial Mathematics, Corporate Finance, Accounting