Financial analysis and planning : theoretical and practical application

Abstract

Nowadays there are different economic agents who carry out common investment operations and for whom it is necessary to know beforehand, if it is possible, the convenience to develop the investment or not. On the one hand, this project conducts a theoretical and practical analysis about the investments of financial analysis and planning. For this, dynamic or classic models are used which use the Net Present Value (NPV) criterion and the Internal Rate of Return (IRR) as an analysis mean. Moreover, there are also sensitivity and scenarios analysis performed to introduce the risk in the investments analysis. On the other hand, the financial planning process is also performed with the order to find out if the company presents liquidity problems during the investment realization or not and to analyze the funding source to ensure the existence of liquidity.