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Unit of study_

PMGT6873: Project Economics and Investment

Building on the student's pre-existing knowledge base and team skills this course is designed to develop understanding and core competencies relating to project economics and investment. It includes coverage of portfolio decisions, project selection, prioritisation, justification, appraisal and financing using pragmatic case studies similar to those likely to have been encountered in professional work. These case studies are then used to build up detailed financial appraisal and decision-support models that can be extended to any project valuation exercise and incorporate practical economic data in order to better understand the corporate, regional and global positioning of a project in terms of factors both internal and external to the project. This is clearly and concisely built into the examples and excel workbooks that are used as the work tools for this course.

Code PMGT6873
Academic unit Project Management
Credit points 6

At the completion of this unit, you should be able to:

  • LO1. develop and make operational the management and execution of a project's financial objectives, including adequate awareness of both the internal and external operational risks, that can be either economic or financial in nature
  • LO2. demonstrate a working knowledge of the fundamentals of project economics and finance, and a practical understanding of the framework typically used to analyse proposals
  • LO3. demonstrate a working knowledge of the tools and techniques for financial appraisal of projects, using excel as the base case tool for the quantitative and risk analysis
  • LO4. demonstrate a working knowledge of the techniques for evaluating the various perspectives of stakeholders in relation to projects appraisal and development
  • LO5. demonstrate a working knowledge of valuation, depreciation, and capitalisation methods
  • LO6. demonstrate a basic understanding of the various methods for life cycle cost determination, and their application in capital asset renewal decisions
  • 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. understand the analysis of various funding options, and their effective selection and management in order to ensure the project's business objectives
  • LO9. develop 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. combine these attributes into a coherent report that draws upon both the technical and qualitative fundamentals, as well as a business case level of awareness that can be clearly and coherently communicated at a managerial or executive level.