Outline

Overview

This course equips members of project management teams with information and tools to do financial appraisal and optimise decision making. It imparts basic knowledge and competencies required in project appraisal and financial management applicable to all sectors of industry and business. These include services, business investment, RandD, capital projects, local, state and national government departments and agencies. Topics include: Review of the Fundamentals of Project Economics and Financial Techniques; Implementation of Fundamental Principles including EUAC, NPV, IRR, B/C, Valuation, Depreciation, Replacement Studies and Life Cycle Costing; Development of Project Alternatives and Application of the Analysis Techniques; Sensitivity Analysis, Risk Analysis and Management; Project Funding and Selection; Project Appraisal Report.

Unit details and rules

Academic unit	Project Management
Credit points	6
Prerequisites ?	None
Corequisites ?	None
Prohibitions ?	PMGT6873
Assumed knowledge ?	None
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Louis Taborda, louis.taborda@sydney.edu.au

Type	Description	Weight	Due	Length
Participation	Class participation Individual responses to 10 weekly discussion questions	10%	Multiple weeks	1-2 paragraphs per week
Outcomes assessed:
Small test	Knowledge test Online test covering topics introduced over the first 7 weeks	15%	Week 08 Due date: 28 Apr 2021 at 17:00	60 min
Outcomes assessed:
Assignment	Group assignment An appraisal report on a chosen project - group work.	40%	Week 12 Due date: 17 May 2021 at 09:00	20-30 pages
Outcomes assessed:
Assignment	Individual assignment Individual assignment covering applied theory and reflection.	35%	Week 13 Due date: 24 May 2021 at 09:00	12 pages
Outcomes assessed:
= group assignment ?

Assessment summary

Group assignment: Group assignment has two parts: written report and presentation. The written report covers a case project, as well as literature review (background research) into Project Financial Evaluation principles including topics such as quantitative methods, qualitative methods, funding options etc. The students are expected to use evaluation techniques covered in weekly tutorials (EUAC, NPV, Profitability Analysis, IRR, Incremental analysis, Payback analysis, Cost Benefit Analysis, Valuation and Replacement studies, Life Cycle Costing analysis, Risk and Sensitivity Analysis) and apply them on a chosen case project. The second part of the assignment is a brief class presentation of the written report. Feedback collected via peer review will be used to determine the individual marks for this assignment.
Individual assignment: The purpose of the Individual assignment is to articulate and reflect upon the competencies developed in the unit with appropriate substantiations. It summarises class experience, teamwork, newly acquired knowledge and the effectiveness of integration of the new information onto the existing knowledge base.
Knowledge test: The Knowledge test is an online quiz with questions related to theoretical components of the unit, as well as questions related to application of theory in practice. The Knowledge Test is conducted in class (Week 8) for students enrolled in weekly mode, while online students will have the choice to either attend this test with the weekly class or to conduct the test via Skype.
Class participation: Weekly questions will be posted on the Discussion Board (Weeks 2-11), giving the opportunity to students to demonstrate not only their understanding of topics covered in this unit, but also their continuous class engagement and practical and reflective thinking.

Detailed information for each assessment can be found on Canvas.

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.

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.

Learning support

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.

Weekly schedule

WK	Topic	Learning activity
Ongoing	Independent study guided by the online contact and lectures. You are expected to undertake 8-10 hours per week on independent study in addition to workshops	Independent study (100 hr)
Week 01	1. Introduction; 2. Equations, compounding interest and net present value; 3. Team formation	Workshop (2 hr)
Week 02	Project manager and project economics; Time-money relationship - discussion	Workshop (2 hr)
Week 03	Depreciation, benefit cost ratio, life cycle and EUAC	Workshop (2 hr)
Week 04	Case study discussion	Workshop (2 hr)
Week 05	Companies as a collection of projects and their valuation	Workshop (2 hr)
Week 06	Financial products – focus on bonds	Workshop (2 hr)
Week 07	The structuring of projects	Workshop (2 hr)
Week 08	Knowledge test and revision	Workshop (2 hr)
Week 09	A conceptual case study for BP in Excel	Workshop (2 hr)
Week 10	Decision theory and a little statistics	Workshop (2 hr)
Week 11	Game theory	Workshop (2 hr)
Week 12	Team presentations/revision	Workshop (2 hr)
Week 13	Team presentations	Workshop (2 hr)

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

All readings for this unit can be accessed through the Library eReserve, available on Canvas.

Grant, Ireson and Leavenworth, Principles of Engineering Economy (Latest). J. Wiley & Sons

Learning outcomes

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.

Outcomes
Graduate qualities

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

LO1. demonstrate a working knowledge of the fundamentals of project economics and finance and practical understanding of the framework typically used to analyse proposals
LO2. demonstrate a working knowledge of the techniques for financial appraisal of projects in public and private sectors
LO3. demonstrate a working knowledge of the techniques for evaluating the various perspectives of stakeholders in relation to projects appraisal and development
LO4. demonstrate a working knowledge of valuation, depreciation and capitalisation methods
LO5. demonstrate a basic understanding of the various methods for life cycle cost determination and their application in capital asset renewal decisions
LO6. demonstrate a basic knowledge of unit cost determination in production ventures
LO7. perform multi-criteria analysis, using a variety of typical financial analysis techniques, for optimum selection and application of a given project appraisal to meet specific business objectives
LO8. analyse various funding options and their effective selection and management in order to ensure the project's business objectives
LO9. demonstrate financial modelling vis-a-vis strategic analysis techniques including development of a framework for sensitivity analysis such as risk identification, minimisation, allocation, documentation and management in economic appraisal
LO10. effectively manage selected project financial objectives incorporating economics and non-economic based project appraisal techniques during planning, implementation and operation phases of the project to ensure that the objectives are met or exceeded.

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
Learning outcomes

Responding to student feedback

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

No changes have been made since this unit was last offered.

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.

Current students

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect

Current students

PMGT5873: Project Economics and Finance

Semester 1, 2021 [Normal evening] - Remote

Overview

Overview

Unit details and rules

Teaching staff

Assessment

Assessment

Assessment summary

Assessment criteria

Late submission

Academic integrity

Learning support

Learning support

Simple extensions

Special consideration

Using AI responsibly

Weekly schedule

Weekly schedule

Study commitment

Required readings

Learning outcomes

Learning outcomes

Graduate qualities

Outcome map

Responding to student feedback

Responding to student feedback

Disclaimer

On this page

Useful links

Media

Student links

About us

Connect