Project appraisal : a reflection

We present project evaluation approaches that should be used as a basis for decision. We try to find what aspects must be taken into account in project analysis, acknowledging the need to consider intangible aspects that are impossible to measure and that lead to subjective analysis to project evaluators. We also wish to understand if firms have adequate tools and methods that incorporate and quantify all non financial aspects. We have identified several other aspects that influence projects’ evaluation and decisionmaking. This is not a mere financial activity, but involves a diversity of behavioural and organizational factors, and business perception, which should be adequately adjusted to invest with success

Projectos de investimento: abordagem tradicional nas empresas portuguesas

A decisão de implementação do projecto de investimento é tomada no momento inicial e depende do valor gerado ser superior ao investimento efectuado. As técnicas de avaliação podem basear-se tanto dados contabilísticos como em critérios baseados no cash flow. Neste trabalho, analisam-se as técnicas de avaliação do risco subjacente ao projecto, bem como se procura conhecer o custo de capital e a taxa de actualização mais utilizada pelas empresas. As empresas portuguesas realçam a taxa interna de rentabilidade, o valor actualizado líquido, a análise de cenários, o período de recuperação do capital, a dimensão do projecto e o risco de ciclo de negócio, bem como o custo de capital da empresa e do projecto como aspectos da análise de projecto de investimento mais relevantes. A dimensão e sector de actividade da empresa, bem como o tipo, a dimensão e a duração do projecto são factores que influenciam a análise efectuada pelas empresas portuguesas

Project’s assessment principles and strategies

The decision of investment is related with a lot of issues that have an assignment in each project and in the final success of a project. In a project appraisal it is important to consider not only the project characteristics, but also the constraints that influence the project. It seems relevant the coordination between evaluation and planning, the continuous or phased evaluation, experience and learning. In the analysis of a project we have also to analyze financial and the non-financial factors.info:eu-repo/semantics/publishedVersio

Mutual funds withdraw shield: performance or agency costs driver?

In this paper, using a unique database, we compare the performance of a set of equity mutual funds to a set of equity savings funds, which are similar to equity mutual funds in all but one characteristic: the tax regime that strongly penalizes withdrawals from equity savings funds. We found evidence consistent with the hypothesis that mutual funds less subject to liquidity shocks exhibit higher performances

Commercial analysis in project appraisal

An adequate analysis of investment projects should provide a knowledge of the commercial factors that are critical to the success of the project. The evaluation of a project should identify the problems associated with the market where the project will be placed and develop the relevant market competencies to allow the project to meet the market’s expectations and face its competition. As such, project appraisal should analyse the aspects associated with the project’s commercial dynamic and, therefore, this work supports the idea that project appraisal should include an analysis of the commercial area.info:eu-repo/semantics/publishedVersio

Investment projects: evaluation tools and methods

Given the need to study di erent areas of analysis during the investment decision process, it is imperative to know which tools and methods are used by companies to assess various nancial and non- nancial aspects. As regards tools, we find that firms use checklists of analysis for non- fi nancial aspects, whereas they use their past experience in risk assessment, gathered from other projects. Records of past evaluation tend to be maintained in companies and those that use external advisors to evaluate projects tend to perform political analysis. As for the methods, companies use the identi cation of risk factors and assessment of ef fects and risk probabilities, the discussion and assessment of favorable and unfavorable factors to the project's execution, a coordinated analysis of fi nancial and non- financial aspects, and the creation of lists of risk indices, attributing a qualitative weight to each item. We have also analyzed the relationship between these tools and methods and each area of analysis in project evaluation

Project appraisal : a refection

We present project evaluation approaches that should be used as a basis for decision. We try to fi nd what aspects must be taken into account in project analysis, acknowledging the need to consider intangible aspects that are impossible to measure and that lead to subjective analysis to project evaluators. We also wish to understand if fi rms have adequate tools and methods that incorporate and quantify all non nancial aspects. We have identi ed several other aspects that infl uence projects' evaluation and decision-making. This is not a mere fi nancial activity, but involves a diversity of behavioural and organizational factors, and business perception, which should be adequately adjusted to invest with success

The importance of strategic analysis in investment appraisal

The investment of a company allows the creation of shareholder value, so an adequate analysis of all factors that may interfere with its viability is relevant. For the evaluation of a given project, financial criteria and non-financial criteria should be used. Here we highlight the importance of the strategic aspects for the investment decision and highlight the importance of the synergies and the consistency with the strategic objectives of the company. We also present the main strategic risks and how to minimize them.info:eu-repo/semantics/publishedVersio