Capital Budgeting

Code:

ESG0024

Acronym:

API

Keywords
Classification	Keyword
OFICIAL	Economics

Instance: 2008/2009 - 1S

Active?	Yes
Responsible unit:	Department of Industrial Engineering and Management
Course/CS Responsible:	Master in Services Engineering and Management

Cycles of Study/Courses

Acronym	No. of Students	Study Plan	Curricular Years	Credits UCN	Credits ECTS	Contact hours	Total Time
MESG	3	Syllabus since 2007/08	2	-	6	42	162

Teaching language

Portuguese

Objectives

Background

This subject deals with the analysis of one of the most important decisions in Corporate Finance - the allocation of funds to capital projects, in order to maximize firm value.

Specic Aims

To provide students with the knowledge of basic methodologies for the analysis of the financial and economic feasibility of investment projects, in certainty and uncertainty conditions.

Previous Knowledge

Basic accounting concepts; basic financial mathematics.

Learning Outcomes

It is intended that at the end of the course students
know how to justify the decision making of real investments in companies, and are capable of analysing and ellaborating Business Plans.

Program

Fundamental concepts. Basic studies for the elaboration of an investment project. Non-financial aspects of projects. Investment Plan. Operational Plan. Financing plan. Projects cash-flows analysis. Profitability measures. The Time Value of money. Capital cost and the financing of projects. Project appraisal under inflation. Projects selection.

Mandatory literature

Maria Dulce Lopes; Textos de apoio , 2006

Complementary Bibliography

Ver Listagem fornecida em conteúdos

Teaching methods and learning activities

The theoretical part of this course is supported by transparencies or data show. Theoretical lectures are complemented with case analysis and practical classes, to which experience in the analysis of investments from the team work will be made part.

Evaluation Type

Distributed evaluation with final exam

Assessment Components

Description	Type	Time (hours)	Weight (%)	End date
Subject Classes	Participação presencial	54,00
	Exame	3,00
	Teste	6,00
	Trabalho escrito	5,00
	Trabalho escrito	30,00
	Total:	-	0,00

Amount of time allocated to each course unit

Description	Type	Time (hours)	End date
	Estudo autónomo	64
	Total:	64,00

Eligibility for exams

General rules aplly.

Calculation formula of final grade

Assessment comprises :
1- a final exam and the elaboration and discussion of a team work, optional, with the following grading: Assignment 40%; Final exam 60%, with minimum mark of 7(out of 20); or,
2- Final exam (100%), if team work is not realized.


FC = 0.6 x FEC + 0.4 x GAC; or 100%FEC, in which:
FC = Final Classification
FEC = Final exam classification
GAC = Group assignment classification


OBS - If FC >18 there will bw an oral exam compulsory (or FC=18);
- If GAC > (FEC+4); GAC will be lowered to FEC+4

Special assessment (TE, DA, ...)

Final exam (100%)on specific dates for these students.

(If FC >18 there will bw an oral exam compulsory (or FC=18)

Classification improvement

By an exam, loosing the part that corresponds to the team assignment.

(If FC >18 there will bw an oral exam compulsory (or FC=18)