This course introduces students to the basic principles of theory and practice of investment analysis in real assets and discusses concepts of the implementation of integrated information systems for project analysis. It is intended that students examine the set of elements necessary to prepare a report evaluating projects and are able to evaluate the economic viability.
Thus, we intend to:
• Provide the students with the framework necessary for rational decision-making in matters of evaluation of
• Explain the importance of value and what creates value;
• Provide the students with knowledge of the key tools and techniques used to evaluate investments, and
•Familiarize students with the basic concepts underlying the use of valuation models and real assets investment decision.
I - DEFINITIONS, CONCEPTS AND PROJECT STAGES - INVESTMENT CYCLE
1.1. Project concept
1.2. Classification of projects
1.3. Investment concept
1.4. Phases of the investment cycle
II - THE IDEA, THE BUSINESS PLAN AND THE COMPANY
2.1. The environment for the creation and formulation of the Idea
2.2. The idea in a business context
2.3. The concept of a business plan
2.4. The stages of constructing a good business plan
2.5. The formal structure to support the idea - the company
2.6. Venture capital
III - EVALUATION CRITERIA OF INVESTMENT PROJECTS
3.1. The opportunity cost of capital
3.2. Net present value (NPV)
3.3. Internal rate of return (IRR)
3.4. Recovery period
3.5. Profitability index
IV - INCENTIVES FORINVESTMENT PROJECTS
4.1. The role of government in investment activity
4.2. Type of incentives in the Azores
The subjects are taught using practical examples of project management with a theoretical framework that follows the outline of the syllabus. While it is primarily a theoretical module the focus is on the interaction with students and concrete discussion of real examples. The introduction to the tools that allow the analysis of economic viability is conducted using excel sheets and a practical example of a feasibility study is undertaken. The types of investment incentives are addressed using the online portal suitable for the purpose. The evaluation consists on the preparation of a business plan that aims to assess the ability to develop a coherent study of the feasibility of the project. The focus is on creativity and innovative aspects of the business plan and on its overall cohesion, in particular the link between each section of the business plan. The business plan is prepared in groups of a maximum of three elements to encourage the practice of brainstorming and collaboration.
Barros, Carlos (1995), “Decisões de Investimento e Financiamento de Projectos”, Edições Silabo.
Brealey, Richard; Myers, Stewart and Allen, Franklin (2007). “Princípios de Finanças Empresariais”, 8ª Edição,
McGraw-Hill de Portugal.
Couto, Gualter; Porfírio, José; e Lopes, Manuel (2004), “Avaliação de Projectos. Da análise Tradicional às Opções
Reais”, Publisher Team.
Damodaran, Aswath (2002), "Investment Valuation. Tools and Techniques for Determining the Value of Any Asset",
John Wiley and Sons, 2nd Edition, New York.
DRACE (2007), “Manual do Empreendedor”, Governo Regional dos Açores.
Marques, Albertino (1998). “Concepção e Análise de Projectos de Investimento”. Edições Silabo.
IAPMEI (2006), Como Elaborar um Plano de Negócios: O Seu Guia para um Projecto de Sucesso,
IAPMEI (2007), Folha de Cálculo Modelo Projecto de Investimento,