| Effective Term: | 2024/20 |
| Institute / School : | Institute of Innovation, Science & Sustainability |
| Unit Title: | Project Finance Application |
| Unit ID: | HENAG1008 |
| Credit Points: | 15.00 |
| Prerequisite(s): | Nil |
| Co-requisite(s): | Nil |
| Exclusion(s): | Nil |
| ASCED: | 081199 |
| Other Change: | |
| Brief description of the Unit |
This project-based unit aims to prepare students to work in entry-level positions within finance departments of companies or financial advisory organisations. Working in teams, students will focus on projects based on assessing the debt/loan funding requirements of a company for new capital expenditure. Students will perform an analysis of a sector and an associated company’s financial performance (solvency, profitability, and liquidity). As a result, students will assess project cash flows, advise management on project viability, and prepare a loan application. Successful completion of this unit will assist students to work effectively in teams, prepare for a range of entry-level roles within the finance function of an organisation or act as a junior financial advisor. Students will also learn how to prepare Project Finance Reports or Business Plans as required by clients. |
| Grade Scheme: | Ungraded (S, UN) |
| Work Experience Indicator: |
| No work experience |
| Placement Component: | |
| Supplementary Assessment:No |
| Supplementary assessment is not available to students who gain a fail in this Unit. |
| Course Level: |
| Level of Unit in Course | AQF Level(s) of Course | | 5 | 6 | 7 | 8 | 9 | 10 | | Introductory | | |  | | | | | Intermediate | | | | | | | | Advanced | | | | | | |
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| Learning Outcomes: |
| Knowledge: |
| K1. | Describe factors influencing a company’s benchmark KPIs including liquidity, profitability and solvency. |
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| K2. | Articulate the debt/loan funding requirements of a company for new capital expenditure. |
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| K3. | Understand the difference between a company's financial performance versus sector financial performance. |
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| Skills: |
| S1. | Interpret a company's financial statements (including financial peers) and reports in regard to liquidity, profitability and solvency. |
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| S2. | Prepare a project viability analysis and its funding as part of cross-functional teams, replicating the real industry setting and decision-making. |
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| S3. | Work effectively in a team. |
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| Application of knowledge and skills: |
| A1. | Undertake an analysis of a company's financial performance on liquidity, profitability, and solvency against the sector. |
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| A2. | Calculate the expected return/cost of capital on the proposed capital investment. |
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| A3. | Create a financial analysis report justifying project viability against a proposed loan application. Including project sustainability goals. |
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| Other outcomes: |
| Unit Content: |
•Sprint 1 (2 Weeks) Detailed analysis and research of a given company's financial performance for liquidity, profitability, and solvency; undertake a detailed analysis of the company's history and business profile; analyse the company's promoter history and management and calculate total revenue from different operations; make a group presentation.
•Sprint 2 (2 Weeks) In-depth study and analysis of the project details; undertake a detailed analysis of the need for the project's expected investment, funding details and timelines; analyse the structure of the project, capex required, infrastructure details and implementation feasibility; make a group presentation.
•Sprint 3 (2 Weeks) Detailed research of market dynamics; undertake a detailed analysis of market structure comparing target market against growth potential; undertake competition analysis considering an overview of the industry and existing players; present in groups.
•Sprint 4 (2 Weeks) Undertake project finance analysis by estimating revenue growth, profitability, and other financial parameters over the next five years; calculate B/S, P/L and Cash Flow for the next five years; calculate KPIs under projected financials; make a group presentation.
•Sprint 5 (2 Weeks) Undertake cash flow analysis by estimating project cash flow; undertake the creation of a model (in Excel spreadsheet) for the cash flow projections using assumptions of growth, revenues, capital, cashflows, and Terminal Value; undertake the execution of stress tests, scenario, and risk analysis; present in groups.
•Sprint 6 (2 Weeks) Undertake project finance analysis and project report writing, document research findings, and financial analysis; deduce subsequent inferences justifying project viability against the proposed loan application; make a group presentation. |
| Graduate Attributes: |
| | Learning Outcomes Assessed | Assessment Tasks | Assessment Type | Weighting | Professional Standards |
| 1. |
K1 S1-S3 A1 |
Business, company, and management profile analysis – report and presentation by the team |
Team report and presentation |
N/A |
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| 2. |
K1-K2 S1-S3 A2-A3 |
Project analysis – establishing the need for the project with capex – report and presentation by the team |
Team report and presentation |
N/A |
|
| 3. |
K1-K3 S1-S3 A2-A3 |
Analysis of market structure, competition analysis – report presentation by the team |
Team report and presentation |
N/A |
|
| 4. |
K2 S1-S3 A2-A3 |
Calculate KPIs under projected financials – report presentation by the team |
Team report and presentation |
N/A |
|
| 5. |
K1-K2 S1-S3 A2-A3 |
Create model (in Excel spreadsheet) for the cash flow projections using assumptions of growth, revenues, capital, cashflows, and Terminal Value - report presentation by the team |
Team report and presentation |
N/A |
|
| 6. |
K1 S1-S3 A2-A3 |
Project report writing justifying project viability against the proposed loan application - report presentation by the team |
Team report and presentation |
N/A |
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