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Economic Evaluation of Projects

Economic Evaluation of Projects

Code	16488
Year	2
Semester	S2
ECTS Credits	6
Workload	TP(60H)
Scientific area	Economics
Entry requirements	No entry requirements.
Mode of delivery	Theoretical-Practical.
Work placements	Not applicable
Learning outcomes	- To develop project design and evaluation skills; - To enable students to develop a coherent economic discourse; - Prepare students for economic and financial decision-making; identify investment opportunities and implement them; - Provide tools, instruments and techniques for the economic and financial evaluation of real assets;
Syllabus	1 - Project feasibility studies 1.1 - The concept of an investment project 1.2 - Project phases 1.3 - Project feasibility studies 1.4 - Project selection 2. The CASH FLOW concept 2..1 Estimating cash flows according to the type of investment 2.2 Opportunity cost of capital 2.3 Investment and financing decisions 2.4 Equity and debt capital 2.5 Weighted average cost of capital (WACC) 3 Investment decision assessment methodologies 3.1 Net Present Value (NPV) 3.2 Internal Rate of Return (IRR) 3.3 Project Profitability Index (PRI) 3.4 Payback 3.5 NPV VS IRR 4. Valuation techniques based on cash flows and techniques for analysing risk and uncertainty. 4.1 Adjustment of the discount rate 4.2 CAPM (Capital Asset Pricing Model). 4.3 Analysing economic and financial indicators 5. Sensitivity Analysis for Project Valuation 5.1. Univariate sensitivity analysis 5.2 Multivariate sensitivity analysis
Main Bibliography	Megre, L. (2018), Análise de Projetos de Investimento: Uma perspetiva económica, 2ª Edição, Lisboa, Edições Silabo. Cebola, A. (2017), Projetos de Investimento de Pequenas e Médias Empresas: Elaboração e Análise. 2ª Edição, Lisboa, Edições Sílabo. Boardman, A., (2014), Cost-benefit analysis: concepts and practice, 4th ed., Pearson Education Limited. Bodies, Z., Kane, A., and Marcusm A., (2019) Essential of Investments, 11th Edition, McGrawHillDavidson, R. and J.G. MacKinnon (2003), Econometric Theory and Methods, Oxford University Press.
Language	Portuguese. Tutorial support is available in English.