Basics of finance fo project management (ECON853_SOLEM )

• Semester 8
• Duration :  Within one semester  
• Type: Mandatory

• Applicability: ESBC course only 

• Module examination:  1 written exam (50%), 1 individual oral presentation (30%), Readings (20%)

• Teaching and learning method : seminar, case studies,  discussion.

Responsible person for the module: Emilie PLANES

Upon completion of the module students will:

• understand the foundations of Cost-Benefit Analysis (CBA) and its application in different areas,  
• analyse the role of discounting future benefits and costs in decision-making  
• be able to understand, identify and apply the Net Present Value (NPV) in project assessment 
• have learnt the limitations of using the NPV in decision-making and related alternative methods.  

Admission to 2nd semester  

Introduction 

Chapter 1: Cost-benefit Analysis: Foundations, areas of applications, limitations, and alternative decision-making methods 

Chapter 2: Discounting: Principles, approaches, and challenges  

Chapter 3: Net Present Value (NPV): Principles, applications, limitations, adjustments to the traditional NPV   

Conclusion 

Text books: 

• De Rus, G. (2021). Introduction to cost–benefit analysis: looking for reasonable shortcuts. Edward Elgar Publishing. 
• Guerriero, C., & Pacelli, A. (2020). Discounting benefits and costs. In Cost-Benefit Analysis of Environmental Health Interventions (pp. 129-143). Academic Press. 
• Hanley, N., Barbier, E. B., & Barbier, E. (2009). Pricing nature: cost-benefit analysis and environmental policy. Edward Elgar Publishing. 
• National Center for Environmental Economics. (2010). Guidelines for preparing economic analyses. 
• (https://www.epa.gov/environmental-economics/guidelines-preparing-economic-analysis-2010-revised-2014) 
• Organisation for Economic Co-operation and Development. (2018). Cost-Benefit Analysis and the Environment: Further Developments and Policy Use. OECD Publishing.