Introduction to Module 3

Financial Analysis revised

Page 50 of 54 pages. Chapter: 4: Intro Module 3

Introduction to Module 3: Project and Management and Analysis

The module is important due to the fact that there are a number of projects in the ICT sector which need to be evaluated to determine if they are financially and socially viable. It is important that the regulators should understand the basic principles in the management and analysis of projects in order to be able to select a good project depending on the resources available. The module focuses more on investment and project analysis using various techniques. After completion of this module the learner should be able to analyse and select projects using different methods, and understand the nature and implication of different types of projects.

This module takes a minimum of 13 hours of study. The module contents are as outlined in Chapter 14-17 in Chapter 1 of KEWL version of this course. Hours for each course are as indicated in each chapter and session.

Module Learning Objectives
The main objective of this module is to enable the learner understand the basic issues involved in project management and analysis and be able to evaluate and select socially and financially viable telecommunication projects. Specifically the module aims at enabling the learner to:

Understand investment and project analysis of telecommunication projects.
Understand how to evaluate and select telecommunication projects using various techniques including the accounting rate of return, the internal rate of return, and the net present value.
Understand the cost benefit analysis of public projects
Understand how both positive and negative externalities affect selection of Telecommunication projects.
Understand how to build different project scenarios using micro and macro variables.

Module Learning Outcomes
After completing this module the learner should be able to

Analyse, evaluate and select telecommunication projects using different methods.
Assess and analyse the social cost benefit analysis of public projects
Relate how other non-financial variables including policies and regulations affect the viability of a telecommunication project.
Construct, analyse and relate a financial model using different micro and macro variables.

Module Learning Activities
For this module the learner will be required to do the following activities:

(i) Learning exercise by summarizing an important reading in a module/session/chapter. Put it on the Website/discussion board and other students should comment on the summaries.

(ii) Structure discussion board interaction on current hot topics in ICT Project Management and Investment Analysis.

(iii) Review and Comment on Project Management Case Studies.

Group Learning Activities

• Building and prepare a financial simulation module using both micro and macro variables - on Excel Spread Sheet.

Summary of Learning Concepts

• Project types and classification
• Project management process
• Project evaluation techniques
• Shadow pricing
• Scenarios analysis in the project management
• Social costs and opportunity costs associated with projects
• Macro-economic variables affecting projects

Core Reading Materials and Reference

A. Books (Main)
1. Levy H & Sarnat M (update); Investment Analysis
2. Brigham E. & Houston, J (2000) Fundamentals of Financial Management, Concise
3. Schwalbe, Kathy (2002). Information technology Project Management, 2nd Edition, Course Technology. 3rd edition, Harcourt College publishers, New York.

Supplementary Readings

1. Roem, M. and Stein, J. (update) Economic development: Projects Policies and Strategies
2. Mishan, E. (update) Elements of Cost Benefit Analysis
3. Amling, (update). Investment Analysis
4. Claude, W. and Ellsworth, Leaon, W (1980) Modern Project Management, Burrill and Ellsworth Associates.
5. Charette, Robert N. (1989). Soft Ware Risk Analysis and Management, McGraw-Hill.

B. Papers and Journals
List of online journals:

1. Finnish Project Management Journal
2. International Journal of Project Management < http://www.elsevier.nl>
3. Project Management Journal http://www.pmi.org

Directory of Project Management
http://directory.google.com/Top/Business/Management/Project_and_Program_Management/Associations/?il=1

Glossary of project management terms www.pmforum.org/library/glossary/

C. Links from the Web
1. www.webcrawler.com a search engine which searches between several search engines such as google, yahoo, about, find what, etc, to give you more links to the issues related to financial statements analysis.