Guia docente 2021_22
Facultad de Ciencias Económicas y Empresariales
Grado en Administración y Dirección de Empresas
  Investment decisions
Topic Sub-topic
Financial management fundamentals - The financial function of the company:
historical evolution. The financial goal. Tasks in financial management.
- The financial and economic structure of the company:
The financial flows in the company. The balance sheet. Turnover and working capital. CAsh conversion cycle. Ratios analysis.
- Effects of the time value of the money: the inflation and the interest rate. Future value of the money. Present value of the money
Concept and classification of investments Investment concept. Classification of investments in the company. Implications of investments for the company.
Data for an investment Variables for estimating the profitability of investments. Estimated Cashflow
Return on Investments valuation methods Investment evaluation. The discount rate or cost of capital. Net present value (NPV). Internal rate of return (IRR). Cash flow estimation.
Return on investments interpretation Choosing among several investments. IRR interpretation: reinvestment rate and inconsistency. Risk in investment decisions
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