Investment Appraisal (1 º Sem 2020/2021)
CEMP (Ciências Empresariais 2015)
Program
1. Introduction/Basic Concepts:
- consumption vs. investment conflict, opportunity cost, key tools in financial calculation ? compound interest, effective and nominal rates, revenue.
2. Project Analysis Methodology:
- project cycle, viability studies, analytical perspectives ? economic, financial and social, relevant cash flows, distinction between profit and cash flow, the project perspective and the shareholder perspective.
3. Evaluation Criteria:
- cash flow determination, cost of capital, payback period, NPV, IRR, B/C ratio, projects with different useful lives, rationing of financial resources.
4. Assessment in non-determining conditions:
- uncertainly and risk, sensitivity analysis, analysis at current and at constant prices.
- consumption vs. investment conflict, opportunity cost, key tools in financial calculation ? compound interest, effective and nominal rates, revenue.
2. Project Analysis Methodology:
- project cycle, viability studies, analytical perspectives ? economic, financial and social, relevant cash flows, distinction between profit and cash flow, the project perspective and the shareholder perspective.
3. Evaluation Criteria:
- cash flow determination, cost of capital, payback period, NPV, IRR, B/C ratio, projects with different useful lives, rationing of financial resources.
4. Assessment in non-determining conditions:
- uncertainly and risk, sensitivity analysis, analysis at current and at constant prices.