Teaching Methodologies
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. 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 on companies as well as the macroeconomic environment.
Learning Results
The objective of this Unit is to enable the student to prepare and analyse an investment project; provide students with theoretical and practical knowledge of the basic methodologies for analysing the economic and financial viability of investment projects under conditions of certainty and uncertainty. Analysis of the investment financing problem. Analysis of the risk associated with an investment project. The importance of the SDGs and goals of the Paris agreement.
At the end of the semester, students should be able to:
– Use the necessary technical and instrumental skills in the economic and financial analysis of investments.
– Use technical skills capable of proposing investment financing solutions.
– Analyse and evaluate the risk level of an investment.
– Support decision-making regarding Real Investments in companies.
– Help in making decisions based on sustainability issues.
For skills to be obtained consistently, classes will have a theoretical and practical nature, using realistic cases and spreadsheets suitable for projects appropriate to the macroeconomic environment of each moment.
Program
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
- THE SUSTAINABLE INVESTMENT PROCESS – EXAMPLES
Internship(s)
NAO
Bibliography
Cebola, A., (2017). Projetos de Investimento de PMEs, Lisboa,2ª edição, Ed. Sílabo.
Jacques, P. (2020). Sustainability: the basics. Routledge.
Matias, F., Baptista, C., Salsa, L., Coelho, L., Serrasqueiro, Z. ( 2023). Gestão Financeira-Edições Sílabo.
Robinson, T. (2020). International Financial Statement Analysis, John Wiley & Sons INC International Concepts.
Soares, I. Moreira, J.; Pinho, C. & Couto, J. (2015). Decisões de Investimento. Edições Sílabo (4ª edição, revista).
Adicional
Bodie Z., Kane, A. and Marcus A. (2012). Essentials of Investments, McGraw Hill, 9th Edition
Damodaran, A, (2012). Investment Valuation, University Edition.
Lawrence R; Daniel C; Bruce J.; Fred M; Soffer (2018), Financial Reporting and Analysis 7th Edition, McGraw-Hill.
Neves, J. C. (2012). Análise e Relato Financeiro, 5ª Edição, Texto Editores.
Robert, H. (2018). Analysis for Financial Management. 12th Edition, Macgraw-Hill
Ross, S.; Westerfield R. and Jaffe, J. (2016). Essentials of Corporate Finance, McGraw-Hill Education, 9ª edition.