INVESTMENT APPRAISAL

Course Description

This course is devoted to the techniques of cost-benefit analysis of investment projects. The course covers both the analytical techniques as well as their practical applications in decision-making. The course topics will cover financial modeling of investment projects, alternative investment criteria, the role of discounting the time value of money, pre-feasibility and feasibility studies in project appraisal, sensitivity analysis and maintaining consistency between real and nominal prices, inflation rates, exchange rates and interest rates. It will also cover how to determine the optimal scale and timing of investments and how to construct income statements and balance sheets from cash flow projections.

INVESTMENT APPRAISAL

Evaluation Tools (Active Term)

Course outcomes

No course outcomes have been defined yet.

Course Syllabus

Reference Books & Course Materials

1. 01 Glenn P. Jenkins, Chun – Yan Kuo, and Arnold C. Harberger, Cost-Benefit Analysis for Investment Decisions, First ed. Kindle Direct Publishing 2019.
2. 02 Belli, P., et.al, Economic Analysis of Investment Operations: Analytical Tools and Practical Applications, WBI Development Studies, World Bank Institute, World Bank, 2001

Learning Outcomes

1. L01 To construct a pre-feasibility study SOLO 4
2. L02 To analyze investment projects to determine whether they should be implemented using modern investment decision-making criteria SOLO 4
3. L03 To apply methods of financial modeling for investment projects SOLO 3
4. L04 To integrate financial, economical, and stakeholder analysis SOLO 4
5. L05 To compare alternative investment criteria SOLO 4
6. L06 To assess implementation of public and private invesment projects SOLO 5

Program Outcomes

1. 1. Analyzes, compares, and synthesizes advanced theoretical and applied knowledge in subfields of civil engineering.
2. 2. Identifies a problem in the field, formulates a research question, collects and analyzes data, and draws conclusions using scientific methods.
3. 3. Develops innovative solutions by applying modeling, analysis, and interpretation skills to complex engineering problems.
4. 4. Designs new systems, processes, or materials by considering real-world constraints such as economy, environment, sustainability, and safety.
5. 5. Plans laboratory or field studies, collects data, performs statistical analysis, and derives scientific results.
6. 6. Effectively uses modern analysis and design software, information technologies, and measurement tools in civil engineering applications.
7. 7. Recognizes, interprets, and integrates relationships between civil engineering and other engineering or scientific disciplines.
8. 8. Acts in accordance with ethical principles, demonstrates professional responsibility, and evaluates the societal impacts of engineering practices.
9. 9. Communicates research and engineering outcomes clearly and effectively through written, oral, and visual means.
10. 10. Works effectively in intra- and interdisciplinary teams and assumes leadership roles when necessary.
11. 11. Follows, critically evaluates, and continuously improves professional knowledge and skills through lifelong learning.
12. 12. Evaluates the environmental, sustainability, and societal impacts of engineering practices and develops responsible solutions.

Po-Lo Matrix