This study evaluated the economic feasibility of installing a Small Hydro Power (SHP) in Brazil. The electricity sector was briefly introduced as well as the case of PCH studied and costs inherent in the design. Moreover, the initial investments, revenues and expenses have been identified. This allowed the projections of cash flows. Economic and financial indicators were calculated as a tool for analyzing the viability of the business. The results were positive, showing thereby that the investment involved is economically viable.