Real Investment Analysis

Classes have a theoretical-practical nature, allowing students to actively participate in the debate and discussion of the proposed real
cases. The issues of green investments/financing, their importance and opportunity, are stimulated. Therefore, the consolidation of
knowledge is recommended with practices that are intended not only to understand the syllabus, but to develop individual capabilities,
critical appreciation and prospective vision. We seek to explore the benefits and challenges of digital technologies for learning and teaching
itself. Research is also instigated by taking advantage of the knowledge accumulated up to this UC and the wide range of economic and
financial data available from companies as well as the macroeconomic environment at each moment.

The objective of this Unit is to enable the student to analyze investments in real assets, providing them with theoretical and practical
knowledge of the basic methodologies for analyzing the economic and financial viability of investment projects under conditions of certainty
and uncertainty. Analysis of the problems of financing Investment in real assets. Analysis of the risk associated with an investment. The
importance of the SDGs and goals of the Paris agreement.
At the end of the unit, students must be able to:
1-Use the necessary technical and instrumental skills in the economic and financial analysis of investments in real assets
2-Analyze and evaluate the risk level of an investment and use technical skills in order to proposie investment financing solutions
3-Support decision-making regarding Real Investments in companies
4-Help students make decisions based on sustainability issues
For skills to be obtained consistently, classes will have a theoretical and practical nature.

I. INTRODUCTION
1. Delimitation of the study area.
2. Types of investment projects.
3. Phases of Preparation/Development of an investment project.
4. General overview of the necessary information.
5. Presentation of a Concrete Case in a spreadsheet
II. BASIC CONCEPTS
1. Opportunity cost
2. CAPM and cost of capital: Levered and unlevered beta. T
3. The duration of the investment in project analysis.
4. The “residual value” of the Project
5. Meanings of Project cash-flow.
III. PROJECT EVALUATION AND SELECTION CRITERIA
1. The Net Present Value (NPV).
2. The Internal Rate of Return (IRR).
3. The Project Profitability Index (IRP).
4. The Investment Payback Period (PRI).
5. Value Creation Strategies.
IV. PROJECT SELECTION
V. INTERACTION OF INVESTMENT AND FINANCING DECISIONS
1. The Adjusted Net Present Value (VALA).
VI. TECHNIQUES FOR REDUCING UNCERTAINTY AND RISK TREATMENT IN PROJECT ANALYSIS
VII. THE SUSTAINABLE INVESTMENT PROCESS – EXAMPLES

NAO