Principles of Financial appraisal of capital projects and applications to agriculture/agribusiness investments. Areas covered include principles of interest and finance, cash flow calculations and investment criteria, allowing for risk, and portfolio selection.
Financial management is a key function of management in agribusiness, with making capital investments being an area of major consequence for agribusiness managers. In this course, you will learn the concepts, principles, and processes of investment project appraisal, with an emphasis on the use of spreadsheets to apply principles of capital budgeting. The key concepts covered in this course are time value of money, net cash flows and their forecasting, the cost of capital, project evaluation criteria and methods, the role of risk in project appraisal, management flexibility, and resource allocation under scarcity.
You'll need to complete the following courses before enrolling in this one:
ACCT7101 - Waived for PGCW Agribusiness students
You can't enrol in this course if you've already completed the following:
FINM3960 (co-taught)
This course is jointly-taught with:
The third learning objective in FINM3960 and FINM7960 is different. FINM3960 has a total of four learning objectives, while FINM7960 includes five. These differences in learning objectives are reflected in the Learning Activities and Assessments of each course.
For consultation on course content: (1) schedule using Calendly, (2) call on the phone, or (3) drop by in-person.
For accurate and timely administrative support, contact directly the AGFS Student Administration team by phone at +61 7 5460 1321 or email at agriculture@enquire.uq.edu.au.
For consultation on course content: (1) schedule using Calendly, (2) call on the phone, or (3) drop by in-person.
For accurate and timely administrative support, contact directly the AGFS Student Administration team by phone at +61 7 5460 1321 or email at agriculture@enquire.uq.edu.au.
The timetable for this course is available on the UQ Public Timetable.
If you have any concerns regarding your official timetable or course allocations, or there are no suitable class times available, contact Faculty of Science Timetable science.mytimetable@uq.edu.au for advice.
If you have any questions about missing class activities, please contact your course coordinator.
Increase knowledge of the concepts, principles, and processes in appraising private investment projects, and apply this knowledge in an agribusiness context.
After successfully completing this course you should be able to:
LO1.
Apply the key concepts, principles, and processes of capital budgeting, including discounted net cash flow analysis.
LO2.
Analyse competing investment projects using measures that do and do not incorporate the time value of money.
LO3.
Apply forecasting and risk analysis methods, including real options, in investment project appraisal.
LO4.
Formulate consequential recommendations based on an investment project appraisal.
LO5.
Demonstrate an understanding of resource scarcity in investment project appraisal.
| Category | Assessment task | Weight | Due date |
|---|---|---|---|
| Quiz |
Sequential tests
|
30% 15% for each test |
Test 1. On topics from weeks 1 and 2. 7/03/2025 2:00 pm Test 2. On topics from weeks 3 and 4. 28/03/2025 2:00 pm |
| Paper/ Report/ Annotation | Case study report | 30% |
17/04/2025 2:00 pm |
| Examination |
Final Exam
|
40% |
End of Semester Exam Period 7/06/2025 - 21/06/2025 |
A hurdle is an assessment requirement that must be satisfied in order to receive a specific grade for the course. Check the assessment details for more information about hurdle requirements.
Test 1. On topics from weeks 1 and 2. 7/03/2025 2:00 pm
Test 2. On topics from weeks 3 and 4. 28/03/2025 2:00 pm
These tests are individual assessments and will be administered online through the course Blackboard site. This is a timed assessment and once you have opened the assessment instructions you have 45 minutes to submit the assessment by the due time of 2:00 pm.
More details about the tests will be provided on the course Blackboard site and in class.
This assessment task evaluates students' abilities, skills and knowledge without the aid of generative Artificial Intelligence (AI) or Machine Translation (MT). Students are advised that the use of AI or MT technologies to develop responses is strictly prohibited and may constitute student misconduct under the Student Code of Conduct.
Unless specifically indicated during the semester by the course coordinator, marks and feedback from this assessment will be available within three weeks of the assessment’s due date.
Refer to Blackboard for submission guidelines. The online assessment is completed within Blackboard under the appropriate assessment title on your course Blackboard site. You should also retain an electronic copy of every piece of assessment you submit.
It is a student's responsibility to check their assessment has been submitted correctly and is markable (such as a video is viewable, or all the text is in the file submitted). Course staff do not routinely check and inform individual students if their assessment has not been submitted or is not markable. For online assessments that are timed, regularly (1) save your work, (2) take timestamped photos or screenshots of your progress, preferably showing your name or student number.
Legal Declaration:
By submitting your work via this website, you formally declare that (1) it is your own original work, and no part of the work has been copied from any other source or person except where due acknowledgement is made; (2) no part of the work has been previously submitted for assessment in this or any other institution; and (3) you have read the Student Integrity and Misconduct Policy (https://policies.uq.edu.au/document/view-current.php?id=149) and understand its implications.
You may be able to apply for an extension.
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Assessment deadlines are firm and must be met. Late submission without permission or non-submission of assessable work will result in penalties being applied. Late submission of assessment will only be granted for documented medical reasons, accident, bereavement, jury service and other circumstances allowed in the UQ Policies and Procedures Library (PPL).
Submission of an Extension of Assessment Due Date (EADD) should be completed online through your My Requests tab via my.UQ Dashboard before the due date of the assessment item.
17/04/2025 2:00 pm
This is an independent and individual assessment. You will be presented a case of an agribusiness that is considering a capital investment decision. You are required to complete a discounted cash flow analysis for the agribusiness in a spreadsheet and then evaluate the results within the context of that agribusiness.
The course Blackboard site provides the Task Description and Marking Criteria for this assessment.
Unless specifically indicated during the semester by the course coordinator, marks and feedback from this assessment will be available within three weeks of the assessment’s due date.
This task has been designed to be challenging, authentic and complex. Whilst students may use AI and/or MT technologies, successful completion of assessment in this course will require students to critically engage in specific contexts and tasks for which artificial intelligence will provide only limited support and guidance.
A failure to reference generative AI or MT use may constitute student misconduct under the Student Code of Conduct.
To pass this assessment, students will be required to demonstrate detailed comprehension of their written submission independent of AI and MT tools.
Refer to Blackboard for more details. You must submit your Assessment task, in Blackboard, via the correct link by the submission deadline. You should also retain an electronic copy of every piece of assessment you submit. It is a student's responsibility to check their assessment has been submitted correctly and is markable (such as a video is viewable, or all the text is in the file they submitted). Course staff do not routinely check and inform individual students if their assessment has not been submitted or is not markable.
Legal Declaration:
By submitting your work via this website, you formally declare that (1) it is your own original work, and no part of the work has been copied from any other source or person except where due acknowledgement is made; (2) no part of the work has been previously submitted for assessment in this or any other institution; and (3) you have read the Student Integrity and Misconduct Policy (https://policies.uq.edu.au/document/view-current.php?id=149) and understand its implications.
You may be able to apply for an extension.
A penalty of 10% of the maximum possible mark will be deducted per 24 hours from time submission is due for up to 7 days. After 7 days, you will receive a mark of 0.
Assessment deadlines are firm and must be met. Late submission without permission or non-submission of assessable work will result in penalties being applied. Late submission of assessment will only be granted for documented medical reasons, accident, bereavement, jury service and other circumstances allowed in the UQ Policies and Procedures Library (PPL).
Submission of an Extension of Assessment Due Date (EADD) should be completed online through your My Requests tab via my.UQ Dashboard before the due date of the assessment item.
End of Semester Exam Period
7/06/2025 - 21/06/2025
The final exam covers course contents covered throughout the semester. Details of the final examination will be discussed with the students throughout the course. The exam is a series of questions that require written answers.
Have your UQ student ID card available for all of your exams.
This assessment task is to be completed in-person. The use of generative Artificial Intelligence (AI) or Machine Translation (MT) tools will not be permitted. Any attempted use of AI or MT may constitute student misconduct under the Student Code of Conduct.
| Planning time | 10 minutes |
|---|---|
| Duration | 120 minutes |
| Calculator options | Any calculator permitted |
| Open/closed book | Open Book examination |
| Exam platform | Paper based |
| Invigilation | Invigilated in person |
You may be able to defer this exam.
Full criteria for each grade is available in the Assessment Procedure.
| Grade | Cut off Percent | Description |
|---|---|---|
| 1 (Low Fail) | 0 - 34 |
Absence of evidence of achievement of course learning outcomes. Course grade description: 0% - 34% |
| 2 (Fail) | 35 - 46 |
Minimal evidence of achievement of course learning outcomes. Course grade description: 35% - 46% |
| 3 (Marginal Fail) | 47 - 49 |
Demonstrated evidence of developing achievement of course learning outcomes Course grade description: A cumulative score of 47% - 49% for all assessment items; OR A cumulative score of 50% or greater for all assessment items and less than a passing mark in the final exam. |
| 4 (Pass) | 50 - 64 |
Demonstrated evidence of functional achievement of course learning outcomes. Course grade description: A cumulative score of 50% - 64% for all assessment items, and a passing mark in the final exam. |
| 5 (Credit) | 65 - 74 |
Demonstrated evidence of proficient achievement of course learning outcomes. Course grade description: A cumulative score of 65% - 74% for all assessment items, and a passing mark in the final exam. |
| 6 (Distinction) | 75 - 84 |
Demonstrated evidence of advanced achievement of course learning outcomes. Course grade description: A cumulative score of 75% - 84% for all assessment items, and a passing mark in the final exam. |
| 7 (High Distinction) | 85 - 100 |
Demonstrated evidence of exceptional achievement of course learning outcomes. Course grade description: A cumulative score of 85% - 100% for all assessment items, and a passing mark in the final exam. |
Course Grading Hurdles:ﾠ
To pass the courseﾠstudents must (1) pass the final exam, and (2) achieve an overall mark for the entire course assessments of 50% or greater.
If a student obtains an overall percentage greater than the cut-offs set to achieve a 4 or higher for the course based on marks from a combination of progressive assessment and the final exam and the student does not score a passing mark in the final exam, they are unable to achieve a grade higher than a 3 (failing grade) for the course.
Supplementary assessment is available for this course.
Should you fail a course with a grade of 3, you may be eligible for supplementary assessment. Refer to my.UQ for information on supplementary assessment and how to apply.
Supplementary assessment provides an additional opportunity to demonstrate you have achieved all the required learning outcomes for a course.
If you apply and are granted supplementary assessment, the type of supplementary assessment set will consider which learning outcome(s) have not been met.
Supplementary assessment can take any form (such as a written report, oral presentation, examination or other appropriate assessment) and may test specific learning outcomes tailored to the individual student, or all learning outcomes.
To receive a passing grade of 3S4, you must obtain a mark of 50% or more on the supplementary assessment.
Please note the following when writing assignments
You must not re-use past work from previous assessments in your assignments.
Academic Integrity and Plagiarism
All reported work must be done by the individual student. Assignments that look and sound alike will be reported as plagiarism – a serious offence at UQ. Please note the university’s policy on academic integrity and plagiarism which can be accessed at Student Integrity and Misconduct Policy / Document / Policy and Procedure Library
TurnItIn Assignments
TurnItIn Assignments that are required to be submitted through TurnItIn, must only be uploaded to the assessment specific Turnitin link on the relevant course Blackboard site.ﾠIf you submit any version of your assessment item to any alternative Turnitin link, this is considered cheating, and you will be held liable for this action. ﾠ
Results
Unless specifically indicated by the course coordinator involved,ﾠevery attempt will be made to have the results for progressive assessment tasks available within three weeks of submission. For items of assessment submitted in the last two weeks of the semester, the results will be available before the day of your end of semester examination in the course, unless otherwise indicated by the Course Coordinator. Results and feedback availability for progressive assessment will be announced via the course Blackboard site.ﾠ
Feedback in this course
Feedback is welcome in this course as any information on how students find this learning experience is constructive.
Please use the evaluation form provided to you at the end of semester - or if you are enrolled internally, a course evaluation process will occur in the last few weeks of semester.
Re-mark Applications – refer to theﾠUniversity's Re-mark Policyﾠto check your eligibility.
You'll need the following resources to successfully complete the course. We've indicated below if you need a personal copy of the reading materials or your own item.
Find the required and recommended resources for this course on the UQ Library website.
FINM3960 and FINM7960 share the one same Blackboard site.
The learning activities for this course are outlined below. Learn more about the learning outcomes that apply to this course.
Filter activity type by
| Learning period | Activity type | Topic |
|---|---|---|
Week 1 (24 Feb - 02 Mar) |
General contact hours |
Week 1 Lecture on (1) course administration, (2) investment appraisal and financial statements, (3) capital budgeting principles including the time value of money. Lecture includes worked examples of net cash flow from a tractor purchase, including salvage value. Tutorial to apply capital budgeting principles and salvage values. Description of assessment requirements for sequential quizzes. Learning outcomes: L01, L02 |
Week 2 (03 Mar - 09 Mar) |
General contact hours |
Week 2 Lecture on (1) capital budgeting techniques (net present value, internal rate of return, payback period), and (2) capital budgeting principles of depreciation, income tax, inflation, and working capital. Lecture includes worked examples on depreciation and inflation. Tutorial to apply all materials from weeks 1 to 2. Complete Quiz 1 (15% of final grade) Learning outcomes: L01, L02 |
Week 3 (10 Mar - 16 Mar) |
General contact hours |
Week 3 Lecture on (1) cash flow concepts of project length, opportunity cost, sunk costs, and overheads, and (2) capital budgeting tools for what-if analysis like break-even and sensitivity analysis. Tutorial to apply all week’s concepts and tools and apply the capital budgeting techniques from Week 2. Learning outcomes: L01, L02 |
Week 4 (17 Mar - 23 Mar) |
General contact hours |
Week 4 Lecture on (1) discount rates and the cost of capital, and (2) competing projects. Lecture includes worked examples of calculating the cost of capital, an annuity and a perpetuity. Tutorial to apply cost of capital and compare two competing projects. Complete Quiz 2 (15% of final grade) Learning outcomes: L01, L02 |
Week 5 (24 Mar - 30 Mar) |
General contact hours |
Week 5 Lecture on financing (funding business activities through debt, paying for investments). Lecture includes worked examples of financing a project through debt. Tutorial to apply financing principles to assess financial feasibility of an investment. Can project cash flows cover loan payments? Description of case study report assessment requirements. Learning outcomes: L01, L02, L04 |
Week 6 (31 Mar - 06 Apr) |
General contact hours |
Week 6 Guest lecture on agribusiness banking. Learning outcomes: L01, L02, L03 |
Week 7 (07 Apr - 13 Apr) |
General contact hours |
Week 7 Lecture on forecasting with worked examples. Tutorial to apply forecasting to commodity prices. Learning outcomes: L01, L03 |
Week 8 (14 Apr - 20 Apr) |
General contact hours |
Week 8 Lecture on (1) risk principles and (2) risk analysis in capital budgeting without using probabilities. Tutorial on risk analysis in capital budgeting without using probabilities. Submit the case study report (30% of final grade). Learning outcomes: L03 |
Week 9 (28 Apr - 04 May) |
General contact hours |
Week 9 Lecture on risk analysis in capital budgeting with using probabilities. Tutorial on risk analysis in capital budgeting with using probabilities through Monte Carlo simulation. Learning outcomes: L03 |
Week 10 (05 May - 11 May) |
Lecture |
Week 10 Lecture on incorporating irreversibility, flexibility, and uncertainty (Real Options) in investment analysis. Tutorial to apply Real Options in investment analysis. Learning outcomes: L01, L02, L03, L04 |
Week 11 (12 May - 18 May) |
General contact hours |
Week 11 Lecture on project appraisal with resource constraints. Tutorial to allocate scarce financial resources using linear programming. Learning outcomes: L02, L05 |
Week 12 (19 May - 25 May) |
General contact hours |
Week 12 Time allocated for student consultations and assessment feedback. Learning outcomes: L01, L02, L03, L05 |
Week 13 (26 May - 01 Jun) |
General contact hours |
Week 13 Revision and preparation for the final exam (40% of final grade). Learning outcomes: L01, L02, L03, L05 |
University policies and procedures apply to all aspects of student life. As a UQ student, you must comply with University-wide and program-specific requirements, including the:
Learn more about UQ policies on my.UQ and the Policy and Procedure Library.