Applications of methods to investments analysis in a project of electric sec

Abstract

The current paperwork shows the main investments evaluation methods (Payback, IRR - Internal Rate of Return - and NPV - Net Present Value) comprehending the methodological concepts and its applications as an auxiliary tool in the decision making inside an organizational context. Search is to comprehend the relevance of each method, besides of its use together, focusing the main concepts involved in the process of investments long term decision making. The methods presented were applied in an electric sector project, in which a study case has been made to evaluate an investment in an area of energy generation starting from a repotentiation in a small hydroelectric plant. Based in the results obtained, relevant information were subsidized to analyze of the economic-financial viability of the project, essential factor to the investments decision in it.