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We are aiming for an incremental return to campus in accordance with guidelines provided by NSW Health and the Australian Government. Until this time, learning activities and assessments will be planned and scheduled for online delivery where possible, and unit-specific details about face-to-face teaching will be provided on Canvas as the opportunities for face-to-face learning become clear.

Unit of study_

CIVL2812: Project Appraisal

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.

Details

Academic unit Civil Engineering
Unit code CIVL2812
Unit name Project Appraisal
Session, year
? 
Semester 2, 2020
Attendance mode Normal day
Location Camperdown/Darlington, Sydney
Credit points 6

Enrolment rules

Prohibitions
? 
ENGG2850 OR CIVL3812
Prerequisites
? 
None
Corequisites
? 
None
Assumed knowledge
? 

MATH1005

Available to study abroad and exchange students

Yes

Teaching staff and contact details

Coordinator Peter Cafe, peter.cafe@sydney.edu.au
Type Description Weight Due Length
Final exam (Open book) Type C final exam Final Exam
formal exam online.
40% Formal exam period 2 hours
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8 LO9
Online task Online exercises
15% Multiple weeks n/a
Outcomes assessed: LO1 LO2 LO3 LO4 LO5 LO6 LO7 LO8 LO9
Assignment Applications Assignment
4% Week 01
Due date: 28 Aug 2020
One A4 page
Outcomes assessed: LO2 LO4 LO7
In-semester exam (Open book) Type C in-semester exam Mid-Semester Exam
25% Week 07
Due date: 16 Oct 2020
50 minutes
Outcomes assessed: LO1 LO9 LO8 LO7 LO6 LO5 LO4 LO3 LO2
Assignment Written Assignment 2
16% Week 10 4 or 5 pages A4
Outcomes assessed: LO1 LO3 LO4 LO6 LO9
Type C final exam = Type C final exam ?
Type C in-semester exam = Type C in-semester exam ?
  1. 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.
  2. 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.
  3. 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.
  4. 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. 
  5. 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.

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.

Special consideration

If you experience short-term circumstances beyond your control, such as illness, injury or misadventure or if you have essential commitments which impact your preparation or performance in an assessment, you may be eligible for special consideration or special arrangements.

Academic integrity

The Current Student website provides information on academic honesty, academic dishonesty, 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 dishonesty or plagiarism seriously.

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

WK Topic Learning activity Learning outcomes
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.

Prescribed 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 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
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.