Building Economics II

Feasibility study: technical, environmental, economic, financial, administrative, social and political feasibility studies; Financial mathematics for property development and construction work: time value of money, interest rates, inflation & discounted cash flows; feasibility appraisal methods: Payback Method, Rate of Return, Net Present Value (NPV) method, Internal Rate of Return, Break-even analysis, Sensitivity Analysis, Risk Analysis, Monte Carlo Simulation & Cost - Benefit Analysis; Feasibility study and appraisal report writing.

Methods of valuation - comparative method, contractors test, profits or account method, residual and investment methods; construction of valuation tables including the theory of compounding and discounting etc. Introduction to feasibility and viability studies and methods of investment appraisal.  The use of economic criteria in public investment; cost/benefit analysis. Methods and problems of investment appraisal techniques. Principle sources of income for funding development. Public investment, mortgage financing. Development bonds, loan grants, subsidies and taxation