Mechanisms of Financial Project Analysis

Minas Gerais, Brazil Chapter

Leonardo is a member of the PMI Chapter in Minas Gerais, Brazil.

An investment decision can be initial, growth, maturation or of disinvestment. The financial planning of projects contemplates the use of one’s own capital, the capital of third parties and also funding. This is an analysis of the application of resources in projects in that they should discuss the scenarios and also perform the simulations.

Cash flow, the balance sheet of the organization and accounting statements provide important subsidies for the decision of the project and the process of planning, a feasibility study and the definition of the limits for the project.

The capital budgeting process starts with the generation of project proposals. After the analysis of economic-financial feasibility of alternatives, the decision is taken to investments related to the project. The budget of the capital to be invested defines the allocation of resources to the project, detailing the inputs and outputs provided for in a given future period. Companies must scale their working capital and discuss requiring short-term financing. 

The monitoring of financing allows you to use the information sources—financial and accounting—of the project itself. The income statement can be summarized or detailed. The quick mode can include operating activities, investing activities, financing activities, exchange variation on cash …

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