Curricular Unit:Code:
Risk and Investment Analysis870ARI
Year:Level:Course:Credits:
3UndergraduateCommercial Management and Accounting6 ects
Learning Period:Language of Instruction:Total Hours:
Winter SemesterPortuguese/English78
Learning Outcomes of the Curricular Unit:
Supply the essential base concepts related to Investment Analysis.
To present the stages of the preparation of an investment project (IP) and the usefulness of previous studies in the formulation of investment projects, as well as to know how to use some forecasting tools to cope with the uncertainty of the financial flows.
State the criteria commonly used in the financial evaluation of investment projects based on Cash Flow and learn how to use them correctly using small examples of application.
Learn to choose between IP's of different size and duration.
Evaluate the impact of Inflation in the investments analysis.
Provide the tools for a careful evaluation of investment projects in the context of uncertainty and risk.
Syllabus:
PC1. Key Theoretical Concepts for Investments Analysis
PC2. Stages, forecasting tools and previous studies of Investments Projects
PC3. Criteria for evaluating the financial performance of a real investment project
PC4. Selection procedures between Investments Projects with different size or different duration
PC5. Inflation in investments analysis
PC6. Investment decision in risk and uncertainty context
Demonstration of the Syllabus Coherence with the Curricular Unit's Objectives:
PC1. Description / Objectives:
Supply the essential base concepts related to Investment Analysis.
PC2. Description / Objectives:
To present the stages of the preparation of an investment project (IP) and the usefulness of previous studies in the formulation of investment projects, as well as to know how to use some forecasting tools to cope with the uncertainty of the financial flows.
PC3. Description / Objectives:
State the criteria commonly used in the financial evaluation of investment projects based on Cash Flow and learn how to use them correctly using small examples of application.
PC4. Description / Objectives:
Learn to choose between IP's of different size and duration.
PC5. Description / Objectives:
Evaluate the impact of Inflation in the investments analysis.
PC6. Description / Objectives:
Provide the tools for a careful evaluation of investment projects in the context of uncertainty and risk.
Teaching Methodologies (Including Evaluation):
CP1. Exposition of the basic theoretical concepts essential to the evaluation of investments, using application examples in the concepts explanation. CP2.This CP uses an expository methodology and a practical example of using the forecasting tools. CP3.e CP4. Presentation of the necessary elements for the IPs financial evaluation and explanation of the IP financial evaluation criteria / explanation of some IP selection procedures of different size / duration. Exercises resolution allowing the proper use of the evaluation criteria CP5. Valuation at constant prices / current prices and the NPV calculation is considered. CP6. Explanation of alternative risk inclusion procedures in the use of IP assessment criteria. Exposure using practical applications. Continuous assessment: 1st test evaluates CP1., CP2. and CP3./ 2nd test evaluates CP4., CP5. and CP6 (weight of 50% each).
Demonstration of the Coherence between the Teaching Methodologies and the Learning Outcomes:
The combination of an expository methodology using small examples of application result in a better understanding of the concepts and help students achieve the proposed goals for that course.
Reading:
[1] Marques, A. (2014). Conceção e Análise de Projetos de Investimento. 4ª Edição. Edições Sílabo.
[2] Soares, I. et al. (2015). Decisões de Investimento. Análise Financeira de Projetos. 4ª Edição. Edições Sílabo.
[3] Megre, L. (2013). Análise de Projetos de Investimento. 1ª Edição. Edições Sílabo.
[4] Silva, E.S. e Queirós, M. (2013). Análise de Investimentos em Ativos Reais – Volume 1. Vida Económica.
[5] Ross, S. A., Westerfield, R. W., Jordan, B.D. (2011). Essentials of Corporate Finance. 9thEdition. McGraw-Hill Higher Education.
Lecturer (* Responsible):
Fátima Rocha (frocha@ufp.edu.pt)