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Unit outline_

CIVL2812: Project Appraisal

Semester 2, 2021 [Normal day] - Remote

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 unit of study is a second-year core unit for students enrolled in Civil Engineering (any major), and is a possible elective in other schools of engineering.

Unit details and rules

Academic unit Civil Engineering
Credit points 6
Prerequisites
? 
None
Corequisites
? 
None
Prohibitions
? 
CIVL3812
Assumed knowledge
? 

MATH1005

Available to study abroad and exchange students

Yes

Teaching staff

Coordinator Faham Tahmasebinia, faham.tahmasebinia@sydney.edu.au
Lecturer(s) Michel Chaaya, michel.chaaya@sydney.edu.au
Tutor(s) Julian Chen, julian.chen@sydney.edu.au
Andy Sun, andy.sun@sydney.edu.au
Jareena Khanal, jareena.khanal@sydney.edu.au
Type Description Weight Due Length
Final exam (Take-home short release) Type D final exam Final Exam
formal exam online.
50% Formal exam period 2.5 hours
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8 LO9
Assignment group assignment Assignment 1
This is a group assignment that involves research and case studies.
15% Week 05 TBA
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8 LO9
In-semester test (Take-home short release) Type D in-semester exam Mid-Semester Exam
This is an in-semester exam.
20% Week 08
Due date: 08 Oct 2021 at 18:00
1.5 hours
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8 LO9
Assignment group assignment Assignment 2
Research and case studies
15% Week 12 TBA
Outcomes assessed: LO1 LO3 LO4 LO6 LO9 LO2 LO5 LO7 LO8
group assignment = group assignment ?
Type D final exam = Type D final exam ?
Type D in-semester exam = Type D in-semester exam ?

Assessment summary

Overall Mark = Mid-Term Exam (20%) + Final exam (50%) + Assignment 1 (15%) + Assignment 2 (15%)

To pass the UoS, you need to achieve a total mark of 50 or more.

Penalty marks deducted from your Overall Mark = 1 Mark will be deducted for every tutorial missed.

As a rough guide: If an average student can remember how to do all the Essential tutorial questions and attended the lectures, he/she should be able to get a pass in the two exams.

Mid Term Exam: There will be a mid-term exam in Week 8. Every student is required to take part in the mid- term exam which is worth 20% of total mark.

Assessment criteria

The University awards common result grades, set out in the Coursework Policy 2014 (Schedule 1).

As a general guide, a high distinction indicates work of an exceptional standard, a distinction a very high standard, a credit a good standard, and a pass an acceptable standard.

Result name

Mark range

Description

High distinction

85 - 100

 

Distinction

75 - 84

 

Credit

65 - 74

 

Pass

50 - 64

 

Fail

0 - 49

When you don’t meet the learning outcomes of the unit to a satisfactory standard.

For more information see guide to grades.

Late submission

In accordance with University policy, these penalties apply when written work is submitted after 11:59pm on the due date:

  • Deduction of 5% of the maximum mark for each calendar day after the due date.
  • After ten calendar days late, a mark of zero will be awarded.

This unit has an exception to the standard University policy or supplementary information has been provided by the unit coordinator. This information is displayed below:

For Assignments 1 and 2, there will be 10% mark deduction for every day delay.

Academic integrity

The Current Student website provides information on academic integrity and the resources available to all students. The University expects students and staff to act ethically and honestly and will treat all allegations of academic integrity breaches seriously.

We use similarity detection software to detect potential instances of plagiarism or other forms of academic integrity breach. If such matches indicate evidence of plagiarism or other forms of academic integrity breaches, your teacher is required to report your work for further investigation.

Use of generative artificial intelligence (AI) and automated writing tools

You may only use generative AI and automated writing tools in assessment tasks if you are permitted to by your unit coordinator. If you do use these tools, you must acknowledge this in your work, either in a footnote or an acknowledgement section. The assessment instructions or unit outline will give guidance of the types of tools that are permitted and how the tools should be used.

Your final submitted work must be your own, original work. You must acknowledge any use of generative AI tools that have been used in the assessment, and any material that forms part of your submission must be appropriately referenced. For guidance on how to acknowledge the use of AI, please refer to the AI in Education Canvas site.

The unapproved use of these tools or unacknowledged use will be considered a breach of the Academic Integrity Policy and penalties may apply.

Studiosity is permitted unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission as detailed on the Learning Hub’s Canvas page.

Outside assessment tasks, generative AI tools may be used to support your learning. The AI in Education Canvas site contains a number of productive ways that students are using AI to improve their learning.

Simple extensions

If you encounter a problem submitting your work on time, you may be able to apply for an extension of five calendar days through a simple extension.  The application process will be different depending on the type of assessment and extensions cannot be granted for some assessment types like exams.

Special consideration

If exceptional circumstances mean you can’t complete an assessment, you need consideration for a longer period of time, or if you have essential commitments which impact your performance in an assessment, you may be eligible for special consideration or special arrangements.

Special consideration applications will not be affected by a simple extension application.

Using AI responsibly

Co-created with students, AI in Education includes lots of helpful examples of how students use generative AI tools to support their learning. It explains how generative AI works, the different tools available and how to use them responsibly and productively.

WK Topic Learning activity Learning outcomes
Week 01 Introduction & Time-Money relationships Text 4.1 to 4.8 Lecture and tutorial (4 hr) LO1 LO2
Week 02 1. Application of time-money relationship; 2. Equivalence 1 Lecture and tutorial (4 hr) LO2 LO3
Week 03 1. Project evaluation methods; 2. Equivalence 2 Lecture and tutorial (4 hr) LO3 LO4 LO5
Week 04 1. Project evaluation methods; 2. Comparing alternatives 1 Lecture and tutorial (4 hr) LO2 LO3 LO4 LO5
Week 05 1. Depreciation and income taxes; 2. Comparing alternatives 2 Lecture and tutorial (4 hr) LO1 LO2 LO3 LO4 LO5
Week 06 1. Price changes and exchange rates; 2. Depreciation and income taxes Lecture and tutorial (4 hr) LO5 LO6 LO7
Week 07 1. Price changes and exchange rates; 2. Replacement analysis Lecture and tutorial (4 hr) LO4 LO5 LO6 LO7 LO8
Week 08 After-tax replacement studies Lecture and tutorial (4 hr) LO2 LO3 LO4 LO5 LO6 LO7 LO8
Week 09 Dealing with uncertainties Lecture and tutorial (4 hr) LO6 LO7 LO8
Week 10 Benefit-cost analysis Lecture and tutorial (4 hr) LO4 LO5 LO6 LO7 LO8
Week 11 Risk analysis and DTA Lecture and tutorial (4 hr) LO1 LO2 LO3 LO4 LO5
Week 12 1. Financing; 2. Dealing with multiattributed decisions Lecture and tutorial (4 hr) LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8 LO9
Week 13 Revision and exam brief Lecture and tutorial (4 hr) LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8 LO9

Attendance and class requirements

Penalty marks deducted from your Overall Mark = 1 Mark will be deducted for every tutorial missed.

Study commitment

Typically, there is a minimum expectation of 1.5-2 hours of student effort per week per credit point for units of study offered over a full semester. For a 6 credit point unit, this equates to roughly 120-150 hours of student effort in total.

Required readings

The TEXT BOOK
Engineering Economy (17th – GLOBAL EDITION)
W. G. Sullivan, E. M. Wicks and C. P. Koelling
Pearson Education

Learning outcomes are what students know, understand and are able to do on completion of a unit of study. They are aligned with the University's graduate qualities and are assessed as part of the curriculum.

At the completion of this unit, you should be able to:

  • LO1. rank projects by combining both financial and non-financial indicators (e.g. environmental and social)
  • LO2. comprehend and relate to real-life examples the fundamental concepts in project appraisal (e.g. the meaning of time value for money, equivalence)
  • LO3. calculate common financial indicators for a given project and explain the relevance of each to the appraisal of the project
  • LO4. understand how risks and uncertainties affect evaluation outcomes and able to deal with uncertainties and risks in analysis
  • LO5. apply techniques to account for the effects of inflation/deflation and exchange rates in analysis
  • LO6. understand the concept and mechanisms for depreciation and carry out pre-tax as well as post-tax analysis
  • LO7. understand the basic concepts in financing and be able to carry out basic financing analysis
  • LO8. 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
  • LO9. understand the challenges of multiattributed decision-making and able to apply an appropriate model to a given project for effective decision making.

Graduate qualities

The graduate qualities are the qualities and skills that all University of Sydney graduates must demonstrate on successful completion of an award course. As a future Sydney graduate, the set of qualities have been designed to equip you for the contemporary world.

GQ1 Depth of disciplinary expertise

Deep disciplinary expertise is the ability to integrate and rigorously apply knowledge, understanding and skills of a recognised discipline defined by scholarly activity, as well as familiarity with evolving practice of the discipline.

GQ2 Critical thinking and problem solving

Critical thinking and problem solving are the questioning of ideas, evidence and assumptions in order to propose and evaluate hypotheses or alternative arguments before formulating a conclusion or a solution to an identified problem.

GQ3 Oral and written communication

Effective communication, in both oral and written form, is the clear exchange of meaning in a manner that is appropriate to audience and context.

GQ4 Information and digital literacy

Information and digital literacy is the ability to locate, interpret, evaluate, manage, adapt, integrate, create and convey information using appropriate resources, tools and strategies.

GQ5 Inventiveness

Generating novel ideas and solutions.

GQ6 Cultural competence

Cultural Competence is the ability to actively, ethically, respectfully, and successfully engage across and between cultures. In the Australian context, this includes and celebrates Aboriginal and Torres Strait Islander cultures, knowledge systems, and a mature understanding of contemporary issues.

GQ7 Interdisciplinary effectiveness

Interdisciplinary effectiveness is the integration and synthesis of multiple viewpoints and practices, working effectively across disciplinary boundaries.

GQ8 Integrated professional, ethical, and personal identity

An integrated professional, ethical and personal identity is understanding the interaction between one’s personal and professional selves in an ethical context.

GQ9 Influence

Engaging others in a process, idea or vision.

Outcome map

Learning outcomes Graduate qualities
GQ1 GQ2 GQ3 GQ4 GQ5 GQ6 GQ7 GQ8 GQ9

This section outlines changes made to this unit following staff and student reviews.

Additional learning resources have been made available so that students can have flexible learning experiences.

Refer to : CIVIL 2812 -Learning Program and Activities- 2021.pdf

Disclaimer

The University reserves the right to amend units of study or no longer offer certain units, including where there are low enrolment numbers.

To help you understand common terms that we use at the University, we offer an online glossary.