Capital Budgeting

Learning Results

Provide the students with the theoretical knowledge and practical skills relating to the design and evaluation of
productive investment projects in the private and social perspectives.

Program

1.Introduction
1.1. Concept and types of investment projects
1.2. Basic methodology for the analysis of investment decision
1.3. Stages of an investment project
1.4. Basic principles of a project evaluation
2. Private evaluation and selection of projects
2.1. Criteria for economic evaluation of an investment project
2.2. Forms of integration of the financing decision
2.3. Sensitivity analysis and risk
2.4. Selection of projects with different useful life and equipment replacement problems
2.5. The incorporation of real options in the evaluation framework
3. Social evaluation and selection of projects
3.1. Underlying economic rationale
3.2. Quantitative and qualitative criteria examples
4. Preparation of the funding budget

Internship(s)

NAO

Bibliography

Barros, C., 2000, “Decisões de Investimento e Financiamento de Projectos”, Ed. Sílabo, 3ª edição.
Bierman Jr., H.; Smidt, S., 1993, “The Capital Budgeting Decision. Economic Analysis of Investment Projects”, 8ª
Ed., Macmillan Publishing Company.
Cebola, A., 2005, “Elaboração e Análise de Projectos de Investimento”, Ed. Sílabo, 2ª edição.
Duarte, C.; Esperança, J.P., 2012, “Empreendedorismo e Planeamento Financeiro”, Ed. Sílabo, 1ª Edição.
Marques, A., 2006, “Concepção e Análise de Projectos de Investimento”, Edições