Overall objectives:

1 - The goal of the curriculum unit is therefore to give students skills in distinct areas, including: (i) incorporate concepts of financial calculus and (2) on financial statements of the companies;
2 - Incorporate the concept of investment project, and make it possible to identify the method and the formulation of an assessment of a project;
3 - Identify the different criteria for the evaluation of projects, as well as a selection of the best available methods;
4 - Incorporate fundamental concepts at the level of the funding of the projects, the "cost of capital", the "ROE return on equity", the "wacc-weight average cost of capital", as well as the ability to select the best source of financing.
5 - Ability to evaluate and analyze the level of risk and uncertainty associated with the decision-making process of a project

Syllabus:

1 - Introduction
2 - Phases of the evaluation study of the project
3 - Elements necessary for project evaluation
4 - Projects evaluation criteria
5 - Selection of investment projects
6 - Project financing
7 - Cost of capital
8 - The risk and uncertainty in the assessment of project

Literature/Sources:

BREALEY, Richard , MYERS, Stewart , 1988 , Principios de Finanças Empresariais , McGraw Hill.
Isabel Moreira , 2008 , Decisões de Investimento: Análise Financeira de Projectos , Edições Sílabo
Hélio Barros , Análise de projetos de investimento ,
Isabel Soares , Avaliação Financeira de Projetos de Investimentos. ,

Assesssment methods and criteria:

Classification Type: Quantitativa (0-20)

Evaluation Methodology:
We use a supported methodology in the presentation of concepts and theoretical models followed by a practical application. The construction of practical models in spreadsheets allows the exploration of their potentialities, which allows to clarify and understand the chain of evolution of concepts and procedures associated with the evaluation and the decision making of the project. It also allows the performance of sensitivity analyzes. The evaluation regime will be implemented through one exam (50%) and one essay (50%). Students with an final mark equal or above 9,5 will approved. Appeal an Final Exams (100%).