Course Title: Investment Evaluation

Part A: Course Overview

Course Title: Investment Evaluation

Credit Points: 12

Course Code




Learning Mode

Teaching Period(s)


City Campus


325H Property, Constr & Proj Mgt


Sem 2 2006,
Sem 2 2007,
Sem 2 2008,
Sem 2 2009,
Sem 2 2010


Singapore Inst of Management


325H Property, Constr & Proj Mgt


Offsh 1 09,
Offsh 1 11,
Offsh 3 09,
Offsh 3 10,
Offsh 3 11,
Offsh1 12,
Offsh3 12,
Offsh3 13

Course Coordinator: Usha Iyer-Raniga

Course Coordinator Phone: +61 3 9925 9066

Course Coordinator

Course Coordinator Location: Building 8, Level 8

Course Coordinator Availability: By appointment

Pre-requisite Courses and Assumed Knowledge and Capabilities

BUIL1130 Financial Reporting, or the equivalent.

Course Description

The course develops students’ abilities to conduct investment evaluations. The financial evaluation techniques generally applied to property, including traditional measures and contemporary discounted cash flow techniques are reviewed. The course also reviews sources of finance, financial packaging for real estate investment, the preparation of submissions for finance; taxation implications regarding property investment; the risk and uncertainty associated with property investment and the interplay of these important dimensions on the viability of a property investment and development.

Objectives/Learning Outcomes/Capability Development

This course develops an understand of the application of compound interest to contemporary financial evaluation techniques.  The evaluation of property and other investment options is developed through the use of the financial evaluation techniques developed.  

The application of appropriate computer assisted techniques in financial analysis is also developed.

At the conclusion of this course, students will:

• understand basic compound interest theory and its application to contemporary financial evaluation techniques.

• be able to solve financial problems using a pre-programmed financial calculator and electronic spreadsheets.

• Understand the following specific evaluation techniques:
- Net Present Value and Internal Rate if Return
- Discounted cash flow analysis

• Appreciate the potential (and limitations) of these techniques for practical applications to:
- real estate investment decision making
- feasibility studies of development projects

• Understand the terminology of financial analysis.

• Appreciate the potential of computer assisted techniques in financial analysis.

• Understand how to build efficient spreadsheet models and be able to use model interrogation techniques.

• Appreciate the risk and uncertainty in the equity and real estate markets and be able to apply specific techniques to assess this uncertainty.

• Understand the various sources of capital and be able to calculate its costs.

• Appreciate the implications of taxation issues on investment property.

• Undertake investment analysis, account for the factors affecting the investment and make recommendations to clients.

Overview of Learning Activities

Problems and exercises that utilise the practical skills in applying compound interest theories to investment evaluation. This will include appropriate computer applications.
Use of case studies to simulate decision-making processes.

Overview of Learning Resources

Text and case study materials.   A set of tutorial exercises and past examination papers will be provided in the first class. 
Students will be expected to be familiar with the operation of a non-programmable calculator with financial and statistical capabilities. (Recommended HP-10B11 or HP 20B)

Overview of Assessment

Assessment in this subject is by way of assignments, tests, tutorial assessment and a final examination. To achieve a pass result in the subject a minimum of 40% of the available marks must be achieved on the final examination.   Detailed assessment information is available in the appropriate Course Guide Part B.