Skip to main content
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, 2021
Attendance mode Normal day
Location Remote
Credit points 6

Enrolment rules

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

MATH1005

Available to study abroad and exchange students

Yes

Teaching staff and contact details

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
Jareena Dawadi Khanal, jareena.khanal@sydney.edu.au
Andy Sun, andy.sun@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 LO9 LO8 LO7 LO6 LO5 LO4 LO3 LO2
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
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 ?

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 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.

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.

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 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
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.