CN4072 Economics and Finance Management in Construction Syllabus:

CN4072 Economics and Finance Management in Construction Syllabus – Anna University PG Syllabus Regulation 2021

OBJECTIVE:

 To introduce the various aspects of Construction economics and finance with the systematic evaluation of cost and benefit associated with different projects.

UNIT I BASIC PRINCIPLES

Time Value of Money – Cash Flow diagram – Nominal and effective interest- continuous interest. Single Payment Compound Amount Factor (P/F,F/P) – Uniform series of Payments (F/A,A/F,F/P,A/P)– Problem time zero (PTZ)- equation time zero (ETZ). Constant increment to periodic payments – Arithmetic Gradient(G), Geometric Gradient (C).

UNIT II COMPARING ALTERNATIVES PROPOSALS

Comparing alternatives- Present Worth Analysis, Annual Worth Analysis, Future Worth Analysis, Rate of Return Analysis (ROR) and Incremental Rate of Return (IROR)Analysis, Benefit/Cost Analysis, Break Even Analysis.

UNIT III EVALUATING ALTERNATIVE INVESTMENTS

Real Estate – Investment Property, Equipment Replace Analysis, Depreciation – Tax before and after depreciation – GST– Input Tax Credit (ITC) – Assessment and Administration of GST – Inflation.

UNIT IV FUNDS MANAGEMENT

Project Finance – Sources of finance – Long-term and short -term finance, Working Capital Management, Inventory valuation, Mortgage Financing – International financial management foreign currency management.

UNIT V FUNDAMENTALS OF MANAGEMENT ACCOUNTING

Management accounting, Financial accounting principles- basic concepts, Financial statements – accounting ratios – funds flow statement – cash flow statement.

OUTCOME:

On completion of the course, the student is expected to be able to
CO1 Summarize the basic principles of Economic in construction
CO2 Evaluate alternate proposals
CO3 Evaluate alternative investments
CO4 Select best source of finance for a project
CO5 Elaborate the finance and accounting

REFERENCES:

1. Patel, B M Project management- strategic Financial Planning, Evaluation and Control, Vikas Publishing House Pvt. Ltd. New Delhi, 2000
2. Shrivastava,U.K., Construction Planning and Management,2nd Edn. Galgotia Publications Pvt. Ltd. New Delhi., 2001.
3. Blank, L.T., and Tarquin,a.J Engineering Economy,4th Edn. Mc-Graw Hill Book Co., 1988
2. Collier C and GlaGola C Engineering Economics & Cost Analysis, 3nd Edn. Addison Wesley Education Publishers.,1998.
5. Steiner, H.M. Engineering Economic principles, 2nd Edn. McGraw Hill Book, 1996