SPR 2022: CM 530 – Project Economics and Risk Analysis

CM530 gets to you work with advanced life-cycle cost modeling that capture real life situations that requires project variables to change over time before judging on a project’s viability! We get to assess the viability using the common financial/economic measures such as the net present value, internal rates of return, and benefit-cost ratios. With uncertainties increasing over a project life-cycle, we also get to quantify the risks in a project, e.g., in duration, cost, revenues, and other important variables, and see if the project will survive under the occurrence of risks. We use the @Risk software to quantify the risks and implement the Monte Carlo simulation technique to see a picture of the project measures under uncertainty and whether the project will still be viable. The examples and projects used are commercial and civil projects that are revenue-generating, i.e., capital investment projects. The first two weeks gets you to know public-private partnerships as a context for how capital investment projects are delivered using private capital. Then, in a step-by-step hands-on approach, I introduce you to basic economic analysis and time-value for money concepts before I get you to the advanced modeling. We use Excel, and I give you template files to use for the exercises/assignments, and the final exam. The exam is a take-home exercise through which you will assess the economic viability and risk analysis of a project. We meet once a week for three hours, Tuesdays 4:30pm to 7:20 in the Digital Commons Gld 007f (Time Schedule being updated to reflect that).  Need more info, email Dr. Aziz at amaziz@uw.edu.