Unit outline_

# CIVL2812: Project Appraisal

## 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

Academic unit Civil Engineering 6 None None CIVL3812 MATH1005 Yes

### Teaching staff

Coordinator Faham Tahmasebinia, faham.tahmasebinia@sydney.edu.au Michel Chaaya

## Assessment

Type Description Weight Due Length
Final exam (Take-home short release) Final Exam
formal exam online.
50% Formal exam period 2 hours
Outcomes assessed:
Assignment Assignment 1
This is a group assignment that involves research and case studies.
15% Week 05 TBA
Outcomes assessed:
In-semester test (Take-home short release) Mid-Semester Exam
This is an in-semester exam.
20% Week 08
Due date: 23 Sep 2022 at 19:00

Closing date: 02 Aug 2022
1 hour
Outcomes assessed:
Assignment Assignment 2
Research and case studies
15% Week 12 TBA
Outcomes assessed:
= group assignment
= Type D final 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.

### 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.

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 Learning outcomes
Week 01 Introduction & Time-Money relationships Text 4.1 to 4.8 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)
Week 13 Revision and exam brief Lecture and tutorial (4 hr)

### 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.

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

## 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.

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.

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

## 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.