Business Plans ( 471018)

Learning Outcomes

1. Master the main criteria regarding project evaluation;
2. Understand the financing mechanisms of investment projects and their impact on the capital structure;
3. Compute the cost of capital;
4. Implement the financial planning for the execution of an investment project.

Study Program

CHAPTER 1 – Criteria and Methodology of Projects Evaluation
1.1. Investments and Project Classification
1.1.1. Investment Project Classification
1.2. Standard assumptions on Investment Projects
1.3. Cash-Flow and Accounting Profit
1.4. Cash-Flow calculation
1.5. Evaluation Criteria of Investments
1.6. Comparing NPV with IRR
1.7. Indifference rate in Project Evaluation
1.8. Project Evaluation Methodologies
1.9. Exercises
CHAPTER 2 – Mutually Exclusive Projects and NPV applications
2.1. Incomplete Investment Alternatives
2.2. Assessing Particular Cases
2.2.1. Equipment with different life cycles
2.2.2. Equipment replacement
2.2.3. Exploring growing resources
2.2.4. Acquiring equipment in a technological environment
2.3. Exercises
CHAPTER 3 – Financing Instruments and capital structure
3.1. Short-run Financing Instruments
3.2. Medium and Long-term Financing Instruments
3.3. Exercises
CHAPTER 4 – Cost of Capital and Decisions on Investing and Financing
4.1. Financing resources and their cost
4.2. Implications between Investing and Financing
4.2.1. Weighted Average Cost of Capital (WACC)
4.2.2. Marginal Cost of Capital (MgC)
4.2.3. Adjusted Net Present Value (ANPV)
4.3. Financial Planning
4.4. Exercises
CHAPTER 5 – Viability of an Investment Project (Case Study)

Bibliography

Barros, C. P. (2007). Avaliação financeira de projectos de investimento (1.ª ed.). Lisboa: Escolar Editora.

Cebola, A. (2018). Elaboração e análise de projectos de investimento: Casos práticos (3.ª ed.). Lisboa: Edições Sílabo.

Dias, H. A. (2024). Sebenta de Planos de Negócio. Moodle ISMT.