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FINANCIAL MANAGEMENT: INVESTMENT
Subject code: 16254101 Print
Identification data
Year: 2026-27
Subject
FINANCIAL MANAGEMENT: INVESTMENT
Code
16254101
Course
Bachelor's Degree in Business Administration and Management (2024)
Level
Undergraduate
Subject matter
Finance
Scope
Credits
Type
Academic year
6.0
COMPULSORY
2nd curs
Period
Second semester
General description
The subject deals with proposing and seeking the necessary tools to make investment decisions in the company. The  classic criteria for valuation and selection of investments (NPV, IRR, NFV) are studied in depth. The risk is then introduced into the investment projects and project evaluation tools are provided for viability analysis.
Modality of instruction
Face-to-face
Required subjects
Recommended subjects
Pre-requisite
16254002 - FINANCIAL ACCOUNTING
Coordinator
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Instructor(s)
Schedules, classrooms and language of instruction for group
Schedules, classrooms and language of instruction for group

Specific learning outcomes of the degree

  • SE7 - Generate advisory and consultancy reports that address business problems.
    • SE7.1 - Apply the appropriate concepts and criteria for taking company decisions on investment and finance.

Transversal learning outcomes of the degree

  • COT1 - Work as part of a team with responsibility and initiative in their field of study
    • COT1.1 - Identify the aims and duties of the team, and the role of the people in it
    • COT1.2 - Act as part of the group to facilitate cohesion and performance
    • COT1.3 - Submit deliverables on time

1. Financial cycle of the firm

1.1 Introduction
1.1.1 Investment and financial management
1.1.2 Introduction to financial dynamics of the firm
1.2 Short-term cycle
1.3 Long-term cycle
1.4 The excess of the cycle: internal financing

2. Valuation and selection of investments

2.1 Introduction
2.2 Static methods
2.3 Dynamic methods: NPV, IRR and VFN
2.3.1 The value of money through time
2.3.2 Net Present Value (NPV)
2.3.3 Internal Rate of Return (IRR)
2.3.4 Similarities and differences between the NPV and IRR
2.3.5 Disadvantages of NPV and IRR. Inconsistencies and other problems
2.3.6 Modification of the basic hypotheses
2.3.7 Net Final Value (NFV)
2.3.8 Inter-relationships among NPV, IRR and VFN
2.3.9 Payback dynamic (PBD)

3. Valuation and selection of investments

3.1 Introduction
3.2 Sensitivity as a measure of risk
3.3 Investment decisions in a random environment
3.4 The expectation and variance of NPV
3.5 The equivalence of investment project
The data displayed in the table is orientative, taking into consideration the heterogeneity of students

Other observations:

The subject, both in the first and second call, is assessable through continuous assessment (CA), which consists of the following activities:

Exercises and practices: 50% of the mark will come from the different tests carried out during the course (presentations, practices, works and exercises).

Final exam: the remaining 50% will come from a final test-type exam. Minimum mark in the final exam to pass the subject: 4.

Class attendance is mandatory. A minimum of 75% must be attended in order to pass the subject following the continuous assessment.

USE OF ARTIFICIAL INTELLIGENCE TOOLS AND AUTHORSHIP VERIFICATION

The use of artificial intelligence tools must strictly comply with the instructions provided by the teaching staff and, in all cases, must be explicitly declared. Any unauthorised, excessive, or undeclared use of such tools in the completion of assessment activities constitutes a breach of the principles of academic integrity and will result in a failing grade for the assessment concerned, without prejudice to the application of any additional disciplinary measures in accordance with the URV Academic Regulations for Bachelor's and Master's Degrees and the URV Student Disciplinary Regulations.

The teaching staff may, at any time, establish additional mechanisms to verify the authorship of submitted work, including oral defence or explanation of submitted assignments and/or assessment activities.

Second call:

In the second call, it will be necessary to present the exercises and practices proposed during the course: 50% of the mark. The final exam of the second call counts for 50%. Minimum grade: 4.

Basic bibliography

  • ( Book ) Brealey, Richard A. / Myers, Stewart C. / Marcus, Alan J., Fundamentos de finanzas corporativas , cop. 2004 Access to the CRAI
  • ( Book ) Kelety Alcaide, Andrés de., Análisis y evaluación de inversiones , 1990 Access to the CRAI
  • ( Book ) Suárez Suárez, Andrés S., Decisiones óptimas de inversión y financiación en la empresa , cop. 2003 Access to the CRAI
  • ( Book ) Fernández Sainz, Ana I. / García Olalla, Myriam, Las Decisiones financieras de la empresa , 1992 Access to the CRAI

Complementary bibliography