Note: This unit version is currently being edited and is subject to change!
CIVL2812: Project Appraisal (2020 - Semester 2)
Download UoS Outline | Back to Bachelor of Project Management- Table S Major (2019)
| Unit: | CIVL2812: Project Appraisal (6 CP) |
| Mode: | Normal-Day |
| On Offer: | Yes |
| Level: | Intermediate |
| Faculty/School: | Civil Engineering |
| Unit Coordinator/s: |
Dr Cafe, Peter
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| Session options: | Semester 2 |
| Versions for this Unit: |
| Campus: | Camperdown/Darlington |
| Pre-Requisites: | None. |
| Prohibitions: | ENGG2850 OR CIVL3812. |
| Brief Handbook Description: | This unit aims to introduce students to project valuations using present-value cash flow theory, taxation and probabilities, and the role of these valuations in the decision-making process. Students are taught techniques for making an analysis of issues involved in project appraisal by various methods and these are applied to businesses, non-profit organisations, and governments. At the end of this unit, students should be able to comprehend and relate to real-life examples the fundamental concepts in project appraisal (e.g. the meaning of time value for money, equivalence); calculate common financial indicators for a given project and explain the relevance of each to the appraisal of the project; rank projects by combining both financial and non-financial indicators (e.g. environmental and social); understand how risks and uncertainties affect evaluation outcomes and be able to deal with uncertainties and risks in analysis; apply techniques to account for the effects of inflation/deflation and exchange rates in analysis; understand the concept and mechanisms for depreciation and carry out pre-tax as well as post-tax analysis; understand the assumptions, pros and cons of each evaluation method and be able to explain why a particular method is appropriate/not appropriate for a given project. The syllabus covers the following concepts: time value of money, cost of capital, simple/compound interest, nominal/effective interest, cost/benefit analysis of projects; equivalence, net present worth (value), future worth (value), annual worth (value), internal rate of return, external rate of return, payback period; cost-benefit analysis, cost-utility analysis, identifying and quantifying non-financial benefits/externalities; Other influencing factors: price changes and exchange rates, depreciation, taxation; Capitalisation and valuation studies, replacement of assets, real option, project risk analysis, decision-tree analysis, WACC, MARR, equity capital, debt. This UoS is a second-year core unit for students enrolled in Civil Engineering (any major), and is a possible elective in other schools of engineering. |
| Assumed Knowledge: | MATH1005. |
| Lecturer/s: |
Dr Cafe, Peter
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| Timetable: | CIVL2812 Timetable | |||||||||||||||||||||||||
| Time Commitment: |
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| T&L Activities: | There will be two one-hour lecture sessions each week. Following each lecture session, tutorial sessions will be conducted. Since we are taking a problem-centred approach, it is not sufficient to totally rely on lectures. You should prepare for each lecture session by going through the nominated readings for each lecture session (See the learning programme page) before the lecture, digest course content and work on the problem set from each class. To achieve the learning outcomes, each student is expected to spend about 10 hours on the subject each week, including two hours on lectures, two hours on tutorials and six hours self study. In addition to attending lectures and tutorials, it is essential that you complete the online quizzes in time. |
Learning outcomes are the key abilities and knowledge that will be assessed in this unit. They are listed according to the course goal supported by each. See Assessment Tab for details how each outcome is assessed.
(8) Professional Effectiveness and Ethical Conduct (Level 2)
1. Rank projects by combining both financial and non-financial indicators (e.g. environmental and social).
(7) Project and Team Skills (Level 2)
2. Comprehend and relate to real-life examples the fundamental concepts in project appraisal (e.g. the meaning of time value for money, equivalence).
3. Calculate common financial indicators for a given project and explain the relevance of each to the appraisal of the project.
4. Understand how risks and uncertainties affect evaluation outcomes and able to deal with uncertainties and risks in analysis.
5. Apply techniques to account for the effects of inflation/deflation and exchange rates in analysis.
6. Understand the concept and mechanisms for depreciation and carry out pre-tax as well as post-tax analysis.
7. Understand the basic concepts in financing and be able to carry out basic financing analysis.
(1) Maths/ Science Methods and Tools (Level 2)
8. Understand the assumptions, pros and cons of each cash flow evaluation method and able to explain why a particular method is appropriate/not appropriate for a given project.
9. Understand the challenges of multiattributed decision-making and able to apply an appropriate model to a given project for effective decision making.
| Assessment Methods: |
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| Assessment Description: |
Online exercises: 24 sets of online calculation exercises with 5 questions each. Solution hints will be given as feedback following the deadline for each set. Best 15 results are counted towards your total mark. Mid Semester exam: 1.5 hours, covering content over the first seven weeks of study. Final Exam: 2 hours, covering all content of this Unit of Study. Participation: evaluated on the preparedness for tutorial problems and contribution to tutorial discussions. Peerwise: You are required to develop 5 multiple choice questions with both questions and answers. Meanwhile, you are also required to answer and comment on other students’ question sets (at least on 15 sets). |
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| Grading: |
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| Policies & Procedures: | See the policies page of the faculty website at http://sydney.edu.au/engineering/student-policies/ for information regarding university policies and local provisions and procedures within the Faculty of Engineering and Information Technologies. |
| Prescribed Text/s: |
Note: Students are expected to have a personal copy of all books listed.
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| Recommended Reference/s: |
Note: References are provided for guidance purposes only. Students are advised to consult these books in the university library. Purchase is not required.
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Note that the "Weeks" referred to in this Schedule are those of the official university semester calendar https://web.timetable.usyd.edu.au/calendar.jsp
| Week | Description |
| Week 1 | Introduction |
| Introduction— Time-Money relationship | |
| Week 2 | Equivalence I |
| Application of Time-Money Relationship | |
| Week 3 | Project Evaluation Methods |
| Equivalence-II | |
| Week 4 | Project Evaluation Methods-continued |
| Comparing alternatives-I | |
| Week 5 | Depreciation and income taxes |
| Comparing alternatives-II | |
| Week 6 | Price changes and exchange rates |
| Depreciation and income taxes-Continued | |
| Week 7 | Price changes and exchange rates-continued |
| Replacement analysis | |
| Assessment Due: Mid-Sem Exam | |
| Week 8 | After-tax Replacement studies |
| Week 9 | Dealing with uncertainties |
| Week 10 | Benefit-cost analysis |
| Week 11 | Risk analysis & DTA |
| Week 12 | Financing |
| Dealing with multiattributed decisions | |
| Week 13 | Revision |
| Project Appraisal in Practice | |
| Exam Period | Assessment Due: Final Exam |
Course Relations
The following is a list of courses which have added this Unit to their structure.
Course Goals
This unit contributes to the achievement of the following course goals:
| Attribute | Practiced | Assessed |
| (8) Professional Effectiveness and Ethical Conduct (Level 2) | No | 11.11% |
| (7) Project and Team Skills (Level 2) | No | 66.66% |
| (6) Communication and Inquiry/ Research (Level 2) | No | 0% |
| (2) Engineering/ IT Specialisation (Level 2) | No | 0% |
| (1) Maths/ Science Methods and Tools (Level 2) | No | 22.22% |
These goals are selected from Engineering & IT Graduate Outcomes Table 2018 which defines overall goals for courses where this unit is primarily offered. See Engineering & IT Graduate Outcomes Table 2018 for details of the attributes and levels to be developed in the course as a whole. Percentage figures alongside each course goal provide a rough indication of their relative weighting in assessment for this unit. Note that not all goals are necessarily part of assessment. Some may be more about practice activity. See Learning outcomes for details of what is assessed in relation to each goal and Assessment for details of how the outcome is assessed. See Attributes for details of practice provided for each goal.
