Feasibility Appraisal and Project Management

At the end of this course, students should be able to: 1. At the end of this course, students should be able to: 2. Undertake feasibility and viability studies in relation to proposed developments and comprehensive development appraisals; 3. Perform basic Project Management tasks including project planning; and 4. explain human resources management in complex development projects.

Nature of investment projects: identification and preparation. Application of modern appraisal techniques – discounted cash flow, internal rate of return and net present value, sensitivity analysis, cost-benefit analysis. Principles and techniques of investment appraisal and application to property. Pick and uncertainty in valuation. Effects of taxation and inflation. Estate surveyor as an adviser on investments, property development scheme, property investment markets. Procedure and methods of assessing economic demand for a particular project. Principal sources of finance for funding development, including techniques of direct property financing. Investment decision process. Examination of projects from investment point of view. Sources of information: financial plans, feasibility studies. Project supervision and management, monitoring and evaluation. Examination of techniques of site evaluation. Relationship between capital return and development yields. Alternative cash flow methods of calculating development costs including the incorporation of building cost inflation and rental growth. Risk in financial appraisals: simple sensitivity and probability analysis, simulation.