2024
Economic Analysis of Investment Projects
Name: Economic Analysis of Investment Projects
Code: ECN02365L
6 ECTS
Duration: 15 weeks/156 hours
Scientific Area:
Economy
Teaching languages: Portuguese
Languages of tutoring support: Portuguese
Sustainable Development Goals
Learning Goals
- Provide students the methodologies and tools needed to elaborate and analyse investment projects, with particular emphasis on the economic and social project analysis.
- Introduce and discuss the main criteria used to select investment projects adopting a social/economic approach or an enterprise/financial approach, providing the appropriate tools for economic decision making.
- Analyse the methodologies adopted by international bureaus (European Union, United Nations) to analyse investment projects, with particular focus on Cost-Benefit Analysis.
- Introduce and discuss the main criteria used to select investment projects adopting a social/economic approach or an enterprise/financial approach, providing the appropriate tools for economic decision making.
- Analyse the methodologies adopted by international bureaus (European Union, United Nations) to analyse investment projects, with particular focus on Cost-Benefit Analysis.
Contents
1. Introduction: Definitions of Investment, Classification and stages in an investment project (IP), Approaches in IP analysis, Concepts of profitability and viability of a IP.
2. Business Plan preparation: Executive Summary, Technical studies, Market Analysis, Marketing startegy, strategic analysis, Financial Plan, Economic and financial analysis
3. Financial analysis of IP: cash flow definitions, elements of financial calculus, IP evaluation criteria, sensitivity analysis, risk analysis, comparing alternative IP
4. Social/economic analysis of IP: economics effects of an IP, Methods used in economic analysis of IP, costbenefit analysis, effects method
5. Project analysis in risk and uncertainty conditions: decision-making in uncertainty conditions, decisionmaking in risky conditions
6.Cost-Benefit Analysis: criteria adopted by the European Union and World Bank, case studies
2. Business Plan preparation: Executive Summary, Technical studies, Market Analysis, Marketing startegy, strategic analysis, Financial Plan, Economic and financial analysis
3. Financial analysis of IP: cash flow definitions, elements of financial calculus, IP evaluation criteria, sensitivity analysis, risk analysis, comparing alternative IP
4. Social/economic analysis of IP: economics effects of an IP, Methods used in economic analysis of IP, costbenefit analysis, effects method
5. Project analysis in risk and uncertainty conditions: decision-making in uncertainty conditions, decisionmaking in risky conditions
6.Cost-Benefit Analysis: criteria adopted by the European Union and World Bank, case studies
Teaching Methods
• Lectures
• Laboratory classes (Informatics)
The teaching method is based on theoretical classes and practical classes. An active learning system is focused to stimulate the student to make his own research on the matters presented in the classes.
During the classes, problem solving exercises and case studies are given to the student, together with the simulation of a business plan, in order to gain experience new knowledge.
Assessment methods and criteria:
The grades are within the interval [0,20].
The assessment method consists of two components (P, Ex):
• [P] Preparation of a business plan (40%).
• [Ex] Examination (60%)
[NF] Final Grade: NF = (P) ×0.4 + Ex ×0.60
If NF> 9.5 ^ Ex> 7: Approved
• Laboratory classes (Informatics)
The teaching method is based on theoretical classes and practical classes. An active learning system is focused to stimulate the student to make his own research on the matters presented in the classes.
During the classes, problem solving exercises and case studies are given to the student, together with the simulation of a business plan, in order to gain experience new knowledge.
Assessment methods and criteria:
The grades are within the interval [0,20].
The assessment method consists of two components (P, Ex):
• [P] Preparation of a business plan (40%).
• [Ex] Examination (60%)
[NF] Final Grade: NF = (P) ×0.4 + Ex ×0.60
If NF> 9.5 ^ Ex> 7: Approved
