Class Investments Analysis

The Investment Analysis course unit aims to equip students with both analytical and practical skills for the evaluation of investment projects in a business context. It forms an essential part of the study plan, contributing to the financial training of managers and preparing them to make informed investment decisions that are aligned with value creation and the organisation’s financial sustainability.

Not applicable

Module I - Investment Project Analysis General aspects. Specific aspects. Module II - Investment Decisions Capital budgeting. Types of projects. Acceptance/rejection decisions. Mutually exclusive decisions. Decisions under capital rationing. Investment and operating cash flows. Module III - Evaluation of an Investment Decision Identification of relevant cash flows. Risk estimation. Assessment of the financial feasibility of the project. Module IV - Project Evaluation – Decision Criteria Payback period. Net Present Value (NPV). Benefit–cost ratio. Internal Rate of Return (IRR). Real investments with different lifespans. Risk analysis. Module V - Sources of Long-Term Financing Equity capital. Debt capital.

Theoretical–practical lectures: including applied examples and guided discussion Case studies: individual and group resolution of simulated projects Problem-Based Learning (PBL): application of concepts to real-world situations Financial simulations: use of Excel-based models Gamification and quizzes: interactive reinforcement of course content

Alexander, J. (2018). Financial Planning & Analysis and Performance Management. John Wiley & Sons Inc. Brealey, R.A., Myers, S.C., Allen, F. & Edmans, A. (2022). Principles of Corporate Finance (14th ed.). McGraw-Hill Education. Couto, G. Lopes, M.M. & Pimentel, P. (2025). Avaliação de Investimentos. Teoria e Prática. Rei dos Livros. Ross, S. A., Westerfield, R. W., & Jordan, B. D. (2022). Fundamentals of Corporate Finance (14th ed.). McGraw-Hill Education.