Evaluation Of Projects And Investments - Investment Planning, Capital Budget, Capital Cost And Financial And Economic Indices In The Decision-Making

Abstract

The objective was to verify that the planning of the investment and the cost of capital and the capital budget are of paramount importance in the evaluation of investment projects. Planning means deciding in advance, deciding whether to opt for alternatives to stocks based on preferences, availabilities, degree of risk acceptance, return periods, profitability and so on. The cost of capital is the interest rate that the investor uses to calculate the return that the project has to obtain on the capital applied to satisfy the investors' return. The investor expects to always earn more than the capital invested in a project. The capital budget refers to permanent assets, in particular fixed assets, such as real estate, installations, furniture, utensils, machinery and so on. The purpose of the research is theoretical, aims to contribute to practical purposes, as the objectives of the research is explanatory, in order to demonstrate the importance of investment planning, cost of capital and capital budget in the evaluation of investment projects and In the decision making, as to the procedures, the research is bibliographical, as far as the methodology is qualitative.