Project Finance Application

Unit Outline (Higher Education)

Level of Unit in Course

AQF Level(s) of Course

Level of Unit in Course

Introductory

Intermediate

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:

Placement Component: No

Supplementary Assessment:No

Supplementary assessment is not available to students who gain a fail in this Unit.

Course Level:

Learning Outcomes:

Knowledge:

K1.	Describe factors influencing a company’s benchmark KPIs including liquidity, profitability and solvency.

K2.	Articulate the debt/loan funding requirements of a company for new capital expenditure.

K3.	Understand the difference between a company's financial performance versus sector financial performance.

Skills:

S1.	Interpret a company's financial statements (including financial peers) and reports in regard to liquidity, profitability and solvency.

S2.	Prepare a project viability analysis and its funding as part of cross-functional teams, replicating the real industry setting and decision-making.

S3.	Work effectively in a team.

Application of knowledge and skills:

A1.	Undertake an analysis of a company's financial performance on liquidity, profitability, and solvency against the sector.

A2.	Calculate the expected return/cost of capital on the proposed capital investment.

A3.	Create a financial analysis report justifying project viability against a proposed loan application. Including project sustainability goals.

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:

Federation University recognises that students require key transferable employability skills to prepare them for their future workplace and society. FEDTASKS (Transferable Attributes Skills and Knowledge) provide a targeted focus on five key transferable Attributes, Skills, and Knowledge that are be embedded within curriculum, developed gradually towards successful measures and interlinked with cross-discipline and Co-operative Learning opportunities. One or more FEDTASK, transferable Attributes, Skills or Knowledge must be evident in the specified learning outcomes and assessment for each FedUni Unit, and all must be directly assessed in each Course.

FED TASK and descriptor		Development and acquisition of FEDTASKS in the Unit
FED TASK and descriptor		Learning outcomes (KSA)	Assessment task (AT#)
FEDTASK 1 Interpersonal	Students will demonstrate the ability to effectively communicate, inter-act and work with others both individually and in groups. Students will be required to display skills in-person and/or online in: • Using effective verbal and non-verbal communication • Listening for meaning and influencing via active listening • Showing empathy for others • Negotiating and demonstrating conflict resolution skills • Working respectfully in cross-cultural and diverse teams.	K1 S1-S2 A1-A3	AT1-AT3
FEDTASK 2 Leadership	Students will demonstrate the ability to apply professional skills and behaviours in leading others. Students will be required to display skills in: • Creating a collegial environment • Showing self -awareness and the ability to self-reflect • Inspiring and convincing others • Making informed decisions • Displaying initiative	K2-K3 S2-S3	AT1-AT4
FEDTASK 3 Critical Thinking and Creativity	Students will demonstrate an ability to work in complexity and ambiguity using the imagination to create new ideas. Students will be required to display skills in: • Reflecting critically • Evaluating ideas, concepts and information • Considering alternative perspectives to refine ideas • Challenging conventional thinking to clarify concepts • Forming creative solutions in problem solving.	K1-K2 S1-S2 A1-A3	AT2-AT3 AT5-AT6
FEDTASK 4 Digital Literacy	Students will demonstrate the ability to work fluently across a range of tools, platforms and applications to achieve a range of tasks. Students will be required to display skills in: • Finding, evaluating, managing, curating, organising and sharing digital information • Collating, managing, accessing and using digital data securely • Receiving and responding to messages in a range of digital media • Contributing actively to digital teams and working groups • Participating in and benefiting from digital learning opportunities.	K3 S1-S3 A1-A2	AT3-AT6
FEDTASK 5 Sustainable and Ethical Mindset	Students will demonstrate the ability to consider and assess the consequences and impact of ideas and actions in enacting ethical and sustainable decisions. Students will be required to display skills in: • Making informed judgments that consider the impact of devising solutions in global economic environmental and societal contexts • Committing to social responsibility as a professional and a citizen • Evaluating ethical, socially responsible and/or sustainable challenges and generating and articulating responses • Embracing lifelong, life-wide and life-deep learning to be open to diverse others • Implementing required actions to foster sustainability in their professional and personal life.	K1-K3 S1-S3 A1-A3	AT2-AT6

	Learning Outcomes Assessed	Assessment Tasks	Assessment Type	Weighting
1.	K1 S1-S3 A1	Business, company, and management profile analysis – report and presentation by the team	Team report and presentation	N/A
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

Adopted Reference Style:

APA

Professional Standards / Competencies:

Standard / Competency