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Unit of study_

PMGT5873: Project Economics and Finance

Projects consume resources that must be financed and procured.  Procurement choices for a project will have implications for planning, structuring, resourcing and financing.  This Unit introduces students to a variety of procurement approaches with an emphasis on different forms of contractual arrangements, responsibilities, organisational structures, solicitation planning, governance principles including partnering and collaborative contracting.     The finance component addresses project financial appraisal and feasibility analysis and financial management applicable to all sectors of industry.  Coverage includes the design, structuring, costing, sourcing and management of project finance, credit risk analysis, the cost of capital, principles of financial accounting, capital structure, markets and securitisation, fundamentals of project economics and implementation of financial principles and techniques such as EUAC, NPV, IRR, B/C, valuation, depreciation, replacement studies and life cycle costing, sensitivity analysis, risk analysis. 

Code PMGT5873
Academic unit Project Management
Credit points 6
Prerequisites:
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None
Corequisites:
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None
Prohibitions:
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PMGT6873

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.