CIVL2812: Semester 2, 2020

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Units CIVL2812 Semester 2 2020 [Normal day]

Unit of study_

CIVL2812: Project Appraisal

Semester 2, 2020 [Normal day] - Camperdown/Darlington, Sydney

Overview

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

Unit code	CIVL2812
Academic unit	Civil Engineering
Credit points	6
Prohibitions ?	ENGG2850 OR CIVL3812
Prerequisites ?	None
Corequisites ?	None
Assumed knowledge ?	MATH1005
Available to study abroad and exchange students	Yes

Teaching staff

Coordinator	Peter Cafe, peter.cafe@sydney.edu.au

Type	Description	Weight	Due	Length
Final exam (Open book)	Final Exam formal exam online.	40%	Formal exam period	2 hours
Outcomes assessed:
Online task	Online exercises	15%	Multiple weeks	n/a
Outcomes assessed:
Assignment	Applications Assignment	4%	Week 01 Due date: 28 Aug 2020 at 23:59	One A4 page
Outcomes assessed:
In-semester test (Open book)	Mid-Semester Exam	25%	Week 07 Due date: 16 Oct 2020 at 16:00	50 minutes
Outcomes assessed:
Assignment	Written Assignment 2	16%	Week 10	4 or 5 pages A4
Outcomes assessed:
= Type C final exam ? = Type C in-semester exam ?

Assessment summary

Applications assignment (4%). This is a short written individual assignment which creates curiosity and wonder about the subject. Individual, due Friday Week 1 before 23:59, submitted in Turnitin. Maximum length one A4 page.
Online mini-quizzes (15%) – two per week. Your best 15 quizzes contribute 15% to the final mark. These quizzes will only be open for the week they apply.
Mid-Semester exam (online) (25%) (<50 mins). This is an open book exam. You will need access to compound interest tables and formula, and a calculator.
Written Assignment 2 (16%) (4-5 pages). Individual or group, due Friday Week 10 before 23:59, submitted in Turnitin. Maximum length five A4 pages.
Final exam (40%) (online) (approx. 2 hrs). This is an open book exam. You will need access to compound interest tables and formula, and a calculator.

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 sydney.edu.au/students/guide-to-grades.

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.

You may only use artificial intelligence and writing assistance tools in assessment tasks if you are permitted to by your unit coordinator, and if you do use them, you must also acknowledge this in your work, either in a footnote or an acknowledgement section.

Studiosity is permitted for postgraduate units unless otherwise indicated by the unit coordinator. The use of this service must be acknowledged in your submission.

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
Week 01	1. Introduction; 2. Time-money relationship	Lecture and tutorial (4 hr)
Week 02	1. Application of time-money relationship; 2. Equivalence 1	Lecture and tutorial (4 hr)
Week 03	1. Project evaluation methods; 2. Equivalence 2	Lecture and tutorial (4 hr)
Week 04	1. Project evaluation methods; 2. Comparing alternatives 1	Lecture and tutorial (4 hr)
Week 05	1. Depreciation and income taxes; 2. Comparing alternatives 2	Lecture and tutorial (4 hr)
Week 06	1. Price changes and exchange rates; 2. Depreciation and income taxes	Lecture and tutorial (4 hr)
Week 07	1. Price changes and exchange rates; 2. Replacement analysis	Lecture and tutorial (4 hr)
Week 08	After-tax replacement studies	Lecture and tutorial (4 hr)
Week 09	Dealing with uncertainties	Lecture and tutorial (4 hr)
Week 10	Benefit-cost analysis	Lecture and tutorial (4 hr)
Week 11	Risk analysis and DTA	Lecture and tutorial (4 hr)
Week 12	1. Financing; 2. Dealing with multiattributed decisions	Lecture and tutorial (4 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.

W. G. Sullivan, E. M. Wicks and C. P. Koelling, Engineering Economy (16th). Pearson Education, 2014

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. 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
Learning outcomes

Responding to student feedback

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.

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

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